Which of the Following Should Be Deducted from Net Income

question 13

Multiple Choice

Which of the following should be deducted from net income in calculating net cash flow from operating activities using the indirect method?

• A) depreciation expense
• B) gain on sale of land
• C) a loss on the sale of equipment
• D) dividends declared and paid

---

Definitions:

Worker

A person engaged in work, especially in manual or industrial labor, often for wages.

Profit Maximizing

Profit maximizing is the process by which a firm determines the price and output level that returns the greatest profit.

Workers Paid

Workers Paid refers to the total compensation, including wages, salaries, and benefits, given to employees for their labor.

Firms

Business organizations or entities engaged in commercial, industrial, or professional activities, aiming to generate profits through the provision of goods or services.