Which of the Following Should Be Added to Net Income

question 42

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) depreciation expense
• B) an increase in inventory
• C) a gain on the sale of equipment
• D) dividends declared and paid

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Definitions:

Imported Lumber

Refers to wood that has been sourced from another country and then brought into a domestic market for use or sale.

Tax Treatment

The specific way tax laws apply to various types of income, expenses, and investments.

Political Uncertainty

Refers to the risk or condition resulting from unclear or unpredictable political outcomes that can impact economic and financial markets.

Export Development Corporation

A government agency tasked with supporting and developing the country's export trade, offering financing, insurance, and bonding services to exporters.