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:

Business Relationships

Bonds or connections between businesses and their stakeholders, including customers, suppliers, and partners.

Negative Phrasing

The use of words or expressions that convey a negative connotation, often used to dissuade or deter.

Positive Statement

An assertion or claim that reflects an objective observation about the world, which can be tested or verified.

Direct Approach

A straightforward method of communication or problem-solving that involves addressing issues without evasion or complication.