All of the Following Might Appear as Adjustments to Net

question 89

Multiple Choice

All of the following might appear as adjustments to net income on an indirect method statement of cash flows except:

• A)gain on sale of plant assets.
• B)payment of cash dividends.
• C)an increase in Accounts Receivable.
• D)depreciation expense.

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Definitions:

Efficiency Wage Model

A theory suggesting that higher wages lead to increased productivity by attracting higher quality workers and motivating all workers to avoid being fired.

Level of Employment

Refers to the number of people employed in the economy at any given time, influencing overall economic output.

Electronic Devices

Gadgets that operate on electrical energy, including computers, smartphones, and household appliances.

No Shirking Constraint

A concept in labor economics that suggests higher wages motivate employees to work harder, reducing shirking on the job.