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:

Culture

The shared customs, traditions, values, and social norms that characterize a group of people or society.

Communication Flows

The ways in which information is transmitted within an organization or group, which can be upward, downward, or lateral.

Downward

A direction of communication or authority that flows from higher levels of a hierarchy to lower levels within an organization.

Upward

in a higher position or direction; often used to describe movements within an organization's hierarchy from lower to higher levels.