Which of the Following Should Be Deducted from Net Income

question 13

Multiple Choice

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

• A) depreciation expense
• B) gain on sale of land
• C) a loss on the sale of equipment
• D) dividends declared and paid

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Definitions:

Dominant Action

The primary or most influential action in a series of movements or decisions, often leading or setting a precedent.

Cognitive Development

The process by which a person's ability to think, reason, perceive relationships, and solve problems emerges and evolves over time.

Sensorimotor

A stage in Piaget's theory of cognitive development where infants learn to interact with their environment through sensory experiences and motor actions.

Formal Operations

The stage in Piaget's theory of cognitive development (typically beginning at age 12) where individuals can think abstractly and reason logically.