Which of the Following Is Added to Net Income as an Adjustment

question 100

Multiple Choice

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

• A) Salaries payable decrease.
• B) Gain on the sale of land.
• C) Loss on the sale of equipment.
• D) Accounts receivable increase.

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Definitions:

Cost-benefit Analysis

An economic evaluation method that compares the costs and benefits of an action or decision to determine its feasibility or worth.

Ethical Theory

A systematic exposition of principles, concepts, and theories that guide moral behavior and distinguish right from wrong.

Universal Laws

Fundamental principles or laws that are believed to be universally applicable, regardless of systems or beliefs.

Direct Pronouncements

Clear and explicit statements or announcements made by an authoritative source, often used in the context of official declarations or policy communications.