Which of the Following Is an Adjustment That Would Need

question 17

Multiple Choice

Which of the following is an adjustment that would need to be made to net income when calculating cash flows from operations under the indirect method?

• A) Subtract depreciation expense
• B) add depreciation expense
• C) add an increase in accounts receivable
• D) add a decrease in accounts payable

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Definitions:

Employee Turnover

The rate at which employees leave a workforce and are replaced by new employees.

Job Specification

A job specification focuses on the individual who will perform the job and indicates the knowledge, abilities, skills, and other characteristics that an individual must have to be able to perform the job.

Job Enrichment

A method to motivate employees by giving them more responsibilities and variety in their tasks, leading to increased satisfaction.

Job Description

A job description lists the tasks, duties, and responsibilities for a particular job. It specifies the major job elements, provides examples of job tasks, and provides some indication of their relative importance in the effective conduct of the job.