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:

Six Sigma

A systematic approach and methodology aimed at reducing defects and improving quality in manufacturing and business processes to achieve near perfection.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how much the values differ from the mean of the set.

Kaizen

A Japanese term meaning "change for the better" or "continuous improvement", often applied in business contexts to denote ongoing, incremental improvement processes.

Continuous Improvement

An ongoing effort to enhance products, services, or processes through incremental and breakthrough improvements.