Which of the Following Should Be Deducted from Net Income

question 177

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

---

Definitions:

Office Decor

The style and arrangement of furnishings and decorations within a workplace, impacting the aesthetic and atmosphere.

Arrangement

The way in which items or affairs are organized, planned, or prepared.

Timely

Pertaining to the occurrence of actions or events at a suitable or opportune moment, ensuring relevance and effectiveness.

Informal Communication

The casual and unstructured manner of exchanging ideas and information typically outside formal communication channels.