Which of the Following Would Be Subtracted from Net Income

question 14

Multiple Choice

Which of the following would be subtracted from net income using the indirect method?

• A) an increase in inventories.
• B) loss on sale of investments.
• C) depreciation expense.
• D) a decrease in accounts payable.

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Definitions:

Pheromones

Chemical substances produced and released into the environment by an animal, especially an insect or mammal, affecting the behavior or physiology of others of its species.

Acoustical Signals

Sounds or audio signals that are used for communication or other purposes, varying in frequency, amplitude, and waveform.

Male Lobsters

Male lobsters are the sexually dimorphic male counterparts in the lobster species, often distinguishable by their larger size and specific physical characteristics compared to females.

Avoids

Takes action to prevent encountering or becoming involved with something undesirable.