Which of the Following Is an Addition to Net Income

question 55

Multiple Choice

Which of the following is an addition to net income when the indirect method is used?

• A)An increase in inventory
• B)A loss on sale of equipment
• C)A decrease in accounts payable
• D)An increase in accounts receivable

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Definitions:

Monthly Service Charge

A fee charged by a provider to a consumer for the provision of services on a monthly basis.

Cash Disbursements

Payments made in cash as part of a business's operational activities.

Internal Control Procedures

Measures implemented by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Treasurer Authorized

Refers to financial decisions or transactions that have been approved by the treasurer of an organization.