Which of the Following Items Would Be Added to Net

question 95

Multiple Choice

Which of the following items would be added to net income when using the indirect method of calculating cash flows provided by operating activities?

• A)An increase in accounts payable
• B)An increase in prepaid expenses
• C)A decrease in accrued revenues
• D)A decrease in taxes payable

---

Definitions:

Perfectly Inelastic

A situation in economics where the quantity demanded or supplied does not change regardless of changes in price.

Elasticity

A measure in economics that denotes the responsiveness of the quantity demanded or supplied of a good or service to a change in its price.

Product Uses

The various applications or purposes for which a product is intended or can be utilized by consumers.

Unit Elasticity

A situation in economics where a change in the price of a good or service results in a proportionally equal change in the quantity demanded or supplied.