When Converting Net Income to Net Cash in the Operating

question 125

Multiple Choice

When converting net income to net cash in the operating activities section of the statement of cash flows, which of the following is NOT added to net income?

• A) Gain on sale of land
• B) Decrease in inventory
• C) Decrease in accounts receivable
• D) Depreciation expense

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Definitions:

Societal Culture

Pertains to the shared values, norms, customs, and practices among people within a society or country.

Income

The financial gain or revenue received by an individual or organization, typically in the form of wages, salaries, or business earnings.

Norms

Socially accepted standards of behavior within a group or society.

Attitudes

A settled way of thinking or feeling about someone or something, typically reflected in a person's behavior.