Which of the Following Should Be Added to Net Income

question 27

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) an increase in inventory
• B) a decrease in accounts payable
• C) preferred dividends declared and paid
• D) a decrease in accounts receivable

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Definitions:

Formal Operations

In Piaget’s terms, mental operations in which all possible combinations are considered in solving a problem. Consequently, each partial link is grouped in relationship to the whole; in other words, reasoning moves continually as a function of a structured whole.

Appearance/Reality Distinctions

The cognitive ability to differentiate between how things appear and how they actually are.

Three-Year-Olds

Refers to children at the age of three, a development stage characterized by rapid growth in language, social interaction, and cognitive skills.

Answer Incorrectly

The act of providing a solution or response that does not accurately address or resolve the question or problem posed.