Which of the Following Adjustments to Net Income Is NOT

question 4

Multiple Choice

Which of the following adjustments to net income is NOT correct if you are trying to calculate cash flow from operating activities?

• A)Add increases in accounts payable
• B)Add back depreciation
• C)Add increases in accounts receivable
• D)Deduct increases in inventory

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Definitions:

Determination

The resolve or firmness of purpose one has in pursuing goals or overcoming obstacles.

Cope

The process of effectively dealing with and attempting to overcome issues and difficulties.

Brave

The quality of being able to face and endure danger, difficulty, or pain without being overcome by fear; exhibiting courage.

Linking

The process of connecting or associating two or more elements together.