Which of the Following Should Be Added to Net Income

question 42

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) depreciation expense
• B) an increase in inventory
• C) a gain on the sale of equipment
• D) dividends declared and paid

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Definitions:

Strategic Decisions

Higher-level choices made by an organization's management that significantly impact the overall direction and success of the organization.

Conceptual Skills

The ability to understand complex ideas and the relationship between them, which is crucial for high-level problem-solving and strategic planning.

Interpersonal Skills

Abilities that facilitate effective and positive communication and interaction with others, including listening, empathy, and conflict resolution.

Management Levels

Describes the hierarchical layers of management in an organization, typically ranging from upper management to middle management and lower management.