Which of the Following,under the Indirect Method,is Not a Proper

question 94

Multiple Choice

Which of the following,under the indirect method,is not a proper adjustment to net income to arrive at cash flow from operations?

• A)Adding a decrease in inventory
• B)Adding an increase in salaries payable
• C)Deducting a increase in prepaid expense
• D)All are proper adjustments to net income.

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Definitions:

Par Value

The nominal or face value of a bond, share of stock, or coupon as indicated on a certificate or instrument.

Par Value

The nominal or face value of a bond, stock, or coupon as stated by the issuer, which is typically not indicative of its market value.

Stated Value

A nominal value assigned by a company to its issued shares, which may be above or below the market value.

Shares

Units of ownership in a company, typically traded on a stock exchange, representing a portion of the corporate equity.