The Method That Starts with Net Income and Adjusts It

question 119

Multiple Choice

The method that starts with net income and adjusts it for items that affect net income, but do not affect cash is called the:

• A) lower-of-cost or market method.
• B) direct method.
• C) indirect method.
• D) gross profit method.

---

Definitions:

Industry Canada

A department of the Canadian government formerly responsible for economic development, innovation, and scientific research, now part of Innovation, Science and Economic Development Canada.

Department of Industry Act

Legislation that establishes and defines the powers, responsibilities, and organization of a country's Department of Industry or similar entity.

F.O.B. Contracts

F.O.B. (Free on Board) Contracts are commercial agreements where the seller is obligated to deliver goods on board a vessel chosen by the buyer at a specified location, with the buyer taking responsibility for the goods once they're onboard.

Title

A formal right of ownership of property, indicating the holder has legal control and rights regarding its use or transfer.