Which of the Following Should Be Deducted from Net Income

question 13

Multiple Choice

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

• A) depreciation expense
• B) gain on sale of land
• C) a loss on the sale of equipment
• D) dividends declared and paid

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Definitions:

Respirator

A device designed to protect the wearer from inhaling harmful dust, fumes, vapors, or gases.

Increased Afterload

A condition in which the heart has to work harder to eject blood due to increased vascular resistance.

Increased Preload

A condition in which there is an elevated volume of blood in the ventricles at the end of diastole, before the heart contracts.

Decreased Contractility

A reduction in the strength or ability of a muscle, particularly the heart muscle, to contract, which can affect overall muscle function.