Which of the Following Items Is Added to Net Income

question 114

Multiple Choice

Which of the following items is added to net income to determine cash flows from operating activities when the indirect method is used to prepare the Operating Activities category of the statement of cash flows?

• A)Accumulated depreciation
• B)Cash from note payable related to truck acquired
• C)Cost of plant assets acquired during the year
• D)Depreciation expense

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Definitions:

Personal Risk

refers to the uncertainties facing individuals that may threaten their health, safety, or financial security.

Indefinitely

An undefined period of time, with no set end date or limitation.

Assets

Economic resources held by an enterprise, capable of delivering future gains.

Accounts Receivable

Money owed to a business by its customers for goods or services delivered or used but not yet paid for.