Which of the Following Statements Is Incorrect Regarding the Use

question 145

Multiple Choice

Which of the following statements is incorrect regarding the use of the indirect method when preparing the operating activities of the statement of cash flows?

• A)A decrease in Accounts Payable is deducted from net income
• B)A decrease in Prepaid Insurance is added to net income
• C)Gain on the retirement of bonds is deducted from net income
• D)Depreciation expense is subtracted from net income

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Definitions:

Type B Personality

A personality type characterized by a relaxed, patient, and easy-going nature.

General Adaptation Syndrome

A theoretical model describing the body's short-term and long-term reactions to stress, involving stages of alarm, resistance, and exhaustion.

Tend-and-befriend Response

A behavioral response to stress that involves seeking social support and nurturing others, theorized to be more common in females.

Problem-focused Coping

A strategy aimed at directly confronting or managing a problem to alleviate stress or conflict.