An Increase in Accounts Payable Is _____ While Calculating Cash

question 50

Multiple Choice

An increase in accounts payable is _____ while calculating cash flows from operating activities using indirect method.

• A) added to net income
• B) deducted from gross income
• C) added to earnings before tax
• D) deducted from depreciation expense

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Definitions:

Minimum-Wage

The lowest legal hourly payment for workers, set by law or contract, aimed at ensuring a minimum standard of living for employees.

Union Membership

Affiliation with a labor union, an organization that represents workers in negotiations with employers over wages, benefits, and working conditions.

Public Sector

The part of the economy composed of both public services and public enterprises, owned and operated by the government.

Information Economy

A system where information is the primary commodity and the main driver of economic activity, influencing how goods and services are generated, exchanged, and valued.