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

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Definitions:

Beverage Company

A business entity that specializes in the production and distribution of drinks, including both alcoholic and non-alcoholic products.

Brand Image

The set of associations in a customer’s mind regarding a brand.

Customer's Mind

Refers to the perceptions, preferences, and psychological processes influencing a consumer's decision making and attitudes towards products or services.

Brand Associations

The thoughts, feelings, perceptions, and beliefs that consumers have about a brand.