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:

Stereotyped

Characterized by widely held but fixed and oversimplified images or ideas of a particular type of person or thing.

Competent

Having the necessary ability, knowledge, or skill to do something successfully.

Task Specialist

In groups, a member who pushes the group toward the attainment of its goals; a person who contributes many ideas and suggestions to the group.

Social-emotional Specialist

A professional dedicated to addressing the social and emotional development needs of individuals, focusing on emotional intelligence, interpersonal skills, and mental health.