Which of the Following Is Deducted from Net Income as an Adjustment

question 107

Multiple Choice

Which of the following is deducted from net income as an adjustment under the indirect method of preparing the statement of cash flows?

• A)Salaries payable decrease.
• B)Inventory decrease.
• C)Depreciation expense.
• D)Accounts receivable decrease.

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Definitions:

Misdemeanor

A criminal offense that is less serious than a felony and typically punishable by fine, penalty, or short-term imprisonment.

Imprisonment

The act of confining someone in a prison or a similar facility as a form of punishment for committing a crime.

Reasonable Force

The minimal level of force necessary to protect oneself, prevent a crime, or apprehend a suspect legally.

Self-Defense

The right to defend oneself against physical harm, usually within the constraints of legal justification.