Which of the Following Would Be Shown as a Deduction

question 29

Multiple Choice

Which of the following would be shown as a deduction from net income when calculating net cash flow from operating activities using the indirect method?

• A)Decrease in Accounts Payable for inventory purchases
• B)Loss on the sale of equipment
• C)Decrease in Accounts Receivable
• D)Increase in salaries payable

---

Definitions:

Opportunity Cost

The foregone benefit that could have been achieved from options not chosen when selecting one among several alternatives.

Property Taxes

Taxes assessed on real estate by local government, based on the property's value.

Contribution Margin

The amount remaining from sales revenue after all variable expenses have been deducted.

Photo-prints

Photographic images produced on paper or other substrates from digital or film originals.