When Converting Net Income to Net Cash Provided by Operating

question 82

Multiple Choice

When converting net income to net cash provided by operating activities on the statement of cash flows,indirect method,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:

Cones

Photoreceptor cells in the retina that enable color vision and visual clarity in bright light.

Fovea Centralis

A small depression in the retina of the eye where visual acuity is highest, due to the concentration of cones, specialized for daylight vision, fine detail, and color.

Retina

The light-sensitive layer of tissue at the back of the inner eye that converts light into electrical signals sent to the brain, allowing for vision.

Aqueous Humor

The clear fluid filling the space in the front of the eyeball between the lens and the cornea.