Which of the Following Would Be an Addition to Net

question 50

Multiple Choice

Which of the following would be an addition to net income when using the indirect method to derive net cash flows from operating activities?

• A) Payment of cash dividends
• B) Decrease in accounts payable
• C) Increase in merchandise inventory
• D) Loss on sale of machinery and equipment

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Definitions:

Groupthink

A psychological phenomenon that occurs within a group of people, in which the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Deindividuation

A psychological state characterized by reduced self-awareness and decreased personal responsibility in group settings, which can lead to uninhibited and sometimes antisocial behavior.

Dispositional Attribution

The tendency to explain someone's behavior based on internal factors, such as personality traits, rather than external circumstances.

Situational Attribution

The process of interpreting someone's behavior as being caused by the situation or environment they are in, rather than their personal disposition.