Which of the Following Should Be Deducted from Net Income

question 177

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) a decrease 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:

Side Chain

A group of atoms attached to the main part of a molecule and having a composition and structure independent of the molecule's primary structure.

Amino Acid

Organic compounds containing an amine (-NH2) and a carboxyl (-COOH) functional group, along with a side chain; they are the building blocks of proteins.

Complete Proteins

Proteins that contain all nine essential amino acids necessary for the dietary needs of humans.

Side Chain

The part of an organic molecule that is attached to the main chain (or backbone) of the molecule, which can influence the molecule's properties and reactivity.