Which of the Following Should Be Added to Net Income

question 27

Multiple Choice

Which of the following should be added to net income in calculating net cash flow from operating activities using the indirect method?

• A) an increase in inventory
• B) a decrease in accounts payable
• C) preferred dividends declared and paid
• D) a decrease in accounts receivable

---

Definitions:

Conditioned Stimulus

In classical conditioning, a previously neutral stimulus that, after becoming associated with the unconditioned stimulus, eventually comes to trigger a conditioned response.

Reciprocal Determinism

A concept in psychology that suggests individual behavior and the social environment influence each other.

Personality

A blend of traits or features that create a person's unique personality.

Behavior

Acting in a way that reflects the true self; part of authenticity.