Which of the Following Is Deducted from Net Income as an Adjustment

question 29

Multiple Choice

Which of the following is deducted from net income as an adjustment under the indirect method of preparing the statement of cash flows?

• A)Salaries payable decrease.
• B)Inventory decrease.
• C)Depreciation expense.
• D)Accounts receivable decrease.

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Definitions:

Gas Exchange

Gas exchange is the biological process through which organisms exchange oxygen and carbon dioxide with their surroundings, critical for respiration.

Diffusion

The passive movement of molecules or particles from an area of higher concentration to an area of lower concentration, a process fundamental to many biological systems.

Bulk Flow

The movement of fluid and its constituents in one direction, driven by pressure, gravity, or another external force, commonly observed in bodily functions and ecosystems.

Exocytosis

The process by which cells release substances to the extracellular environment by fusing vesicles with the plasma membrane.