Which Statement Regarding the Indirect Method Is False

question 39

Multiple Choice

Which statement regarding the indirect method is false?

• A)Depreciation expense is added back to profit.
• B)An increase in trade receivables is added to profit.
• C)An increase in trade payables is added to profit.
• D)An increase in merchandise inventory is subtracted from profit.

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Definitions:

Loving Parent

A caregiver who provides affection, attention, and support to foster the emotional and developmental well-being of their child.

Attachment Pattern Change

refers to alterations in the way an individual forms emotional bonds and connections with others, often due to experiences or interventions.

Social Deprivation

A lack of regular and enriching social interactions and relationships, leading to negative impacts on mental and emotional well-being.

Infants

Young children in the earliest stage of life, typically from birth to one year old, characterized by rapid physical and cognitive development.