Which of the Following Should Be Deducted from Net Income

question 177

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) a decrease 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:

Reason

The mental capacity to form judgments or conclusions based on logic and knowledge.

Combination-of-liquids task

A cognitive task used to assess a child's understanding of conservation; involves mixing liquids to see if a child understands that volume remains constant despite changes in appearance.

Late adolescence

A developmental stage roughly ranging from ages 15 to 19, characterized by continued physical, emotional, and cognitive maturation.

Systematically generate

The process of creating or producing something in a methodical and organized manner, often following a specific set of rules or a procedure.