Under the Indirect Method,which of the Following Items Would Be

question 147

Multiple Choice

Under the indirect method,which of the following items would be subtracted from net income to determine the cash flow from operating activities?

• A) Loss on the sale of equipment.
• B) Increase in the balance of accounts receivable.
• C) Increase in accrued interest payable.
• D) Depreciation expense.

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Definitions:

Economic Self-interest

The motivation to act in a way that results in the greatest personal benefit or profit.

Economic Behavior

The study of how individuals make decisions to allocate resources under conditions of scarcity.

Selfishness

A trait characterized by concern with one's own interests, often disregarding others' well-being or desires.

Utility

The satisfaction or benefit that a consumer receives from consuming a good or service.