All of the Following Are Additions to Net Income When

question 63

Multiple Choice

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

• A)losses on sales of long term assets.
• B)a decrease in Accounts Payable.
• C)a decrease in Prepaid Insurance.
• D)a decrease in Accounts Receivable.

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Definitions:

Service Level

A measure of the quality of service provided, including the speed, reliability, and responsiveness of service to meet customer expectations.

Salvage Value

The estimated residual value of an asset at the end of its useful life.

Production Order Quantity

The optimal order quantity a company should produce to minimize storage and production costs while meeting demand.

Daily Demand Rate

The average quantity of a product or service that is requested by customers over the course of a single day.