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:

Psychological Triggers

Stimuli or events that provoke a psychological reaction, often related to past trauma or deeply ingrained habits.

Asthma Attacks

Episodes of increased asthma symptoms, such as coughing, wheezing, shortness of breath or tightness in the chest, resulting from inflammation and constriction of the airways.

Precipitating Attacks

Events or factors that trigger the onset of an acute episode of a disease or condition.

Asthma Development

The process by which individuals become susceptible to or start showing symptoms of asthma, a chronic condition affecting the airways in the lungs.