Which of the Following Items Is Deducted from Net Income

question 75

Multiple Choice

Which of the following items is deducted from net income to arrive at cash flow from operations when using the indirect method?

• A) depreciation expense
• B) amortization expense
• C) decrease in accounts receivable
• D) decrease in accounts payable

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Definitions:

Accepted Scientific

Pertains to theories, methods, or practices that are widely recognized and validated by the scientific community.

Representative Sample

A group of individuals, selected from a population for study, which matches the population on important characteristics such as age and sex.

Population

The total number of individuals in a specified area or group, often used in the context of statistical research.

Important Characteristics

Essential or significant attributes, qualities, or properties that define or distinguish a person, object, or concept.