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

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Definitions:

Rainy Season

A period of the year characterized by increased rainfall compared to other periods, typically influenced by geographic and climatic factors.

Southern Hemisphere

The half of the Earth that is south of the Equator, characterized by opposite seasons to the Northern Hemisphere.

Boreal Forest

The northern coniferous forest biome found primarily in Canada, northern Europe, and Siberia; also called taiga.

Corresponding Latitudes

Locations across the globe that share the same distance north or south of the Equator.