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

---

Definitions:

Theory of Mind

The ability to attribute mental states—beliefs, intents, desires, emotions, knowledge—to oneself and others and to understand that others have beliefs, desires, and intentions that are different from one's own.

Private Experiences

Internal, subjective states that include thoughts, feelings, and perceptions, accessible only to the individual experiencing them.

Theory of Activation-Synthesis

A theory suggesting that dreams are the result of the brain trying to make sense of random neural activity during REM sleep.

Automatic Processes

Mental activities that occur without conscious effort or awareness, often due to habituation or practice.