The _____ Method Begins with Net Income for a Period

question 82

Multiple Choice

The _____ method begins with net income for a period and then shows adjustments to net income to convert revenues to cash received from customers and to convert expenses to cash disbursed to various suppliers of goods and services.Most companies use this method.

• A)direct
• B)indirect
• C)adjustment
• D)income
• E)free cash

---

Definitions:

Production Possibilities

Refers to the various combinations of goods and services an economy can produce, given its available resources and technology.

Capital Goods

Durable goods that are used in the production of other goods or services, such as machinery and equipment.

Consumer Goods

Products that are purchased for consumption by the average consumer, as opposed to goods used in the production of other products.

Production Alternative D

A hypothetical option in a decision-making process for producing goods or services, often characterized by differences in technology, labor, or resources.