All of the Following May Appear as an Adjustment of Net

question 83

Multiple Choice

All of the following may appear as an adjustment of net income when preparing the statement of cash flows using the indirect method EXCEPT:

• A)payment of cash dividends.
• B)depreciation expense.
• C)loss on sale of long-term assets.
• D)an increase in accounts payable.

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Definitions:

Idealism

A philosophy that emphasizes the primacy of ideas and ideals in interpreting experience and guiding actions, often contrasted with materialism.

Scorched Earth Policy

A military strategy that involves destroying anything that might be useful to the enemy while advancing through or withdrawing from an area.

Kit Carson

An American frontiersman and soldier who played a key role in the westward expansion of the United States, but whose actions also contributed to the displacement of Native American tribes.