Which of the Following Should Be Added to Net Income

question 27

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

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Definitions:

Unpleasant Event

An occurrence that causes discomfort, distress, or dissatisfaction to an individual.

Desired Employee Behavior

The specific actions or reactions that an organization encourages and rewards in its employees to achieve its objectives.

Positive Reinforcement

The addition of a rewarding stimulus following a desired behavior, increasing the likelihood of that behavior being repeated.

Punishment

A method used to reduce undesirable behavior by applying negative consequences or removing positive reinforcements.