All of the Following Are Deducted from Net Income When

question 126

Multiple Choice

All of the following are deducted from net income when preparing the statement of cash flows under the indirect method except:

• A)an increase in Accounts Payable.
• B)a decrease in Accrued Liabilities.
• C)an increase in Accounts Receivable.
• D)an increase in Inventory.

---

Definitions:

Defined Benefit Pension Plan

A retirement plan where employee benefits are calculated based on a formula considering factors like salary history and duration of employment, with the employer bearing the investment risk.

Pension Expense

The cost of a company's pension plan, recognized in its financial statements during a specific period.

Net Amortization

The process of gradually reducing the book value of an intangible asset over its useful life.

Interest Cost

A financial charge associated with borrowing funds or the cost incurred on debt over a specific period.