Which of the Following Would Be Shown as a Deduction

question 101

Multiple Choice

Which of the following would be shown as a deduction from net income when calculating net cash flow from operating activities using the indirect method?

• A) Decrease in accounts payable for inventory purchases
• B) Loss on the sale of equipment
• C) Decrease in accounts receivable
• D) Increase in salaries payable

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Definitions:

Metabolism

The biochemical processes that occur within a living organism, necessary for maintaining life, including converting food into energy.

Small Intestine

A part of the digestive system where most of the digestion and absorption of nutrients occurs.

Digested Food

Nutrients and substances that have been broken down by the digestive system from ingested food to be absorbed and used by the body.

Semi-Starvation

A condition of prolonged inadequate caloric intake, below the level necessary for maintenance of a healthy body weight.