Which of the Following Should Be Added to Net Income

question 69

Multiple Choice

Which of the following should be added to net income in calculating net cash flow from operating activities using the indirect method?

• A) a gain on the sale of land
• B) a decrease in accounts payable
• C) an increase in accrued liabilities
• D) dividends paid on common stock

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Definitions:

McGregor

Refers to Douglas McGregor's Theory X and Theory Y, which describe two contrasting models of workforce motivation and management.

Theory X

Assumes people dislike work, lack ambition, are irresponsible and prefer to be led.

Bureaucracy

An organizational structure characterized by formal rules and regulations, a clear hierarchy, and detailed procedures and protocols.

Division of Labour

The allocation of different tasks to different people or groups in an organization or economy, aimed at increasing efficiency and productivity.