Which Statement Is False Regarding the Preparation of the Indirect

question 60

Multiple Choice

Which statement is false regarding the preparation of the indirect method of the statement of cash flows? 

• A) An increase in merchandise inventory is subtracted from net income.
• B) Depreciation expense is added to net income.
• C) An increase in accounts receivable is added to net income.
• D) An increase in accounts payable is added to net income.

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Definitions:

Southern Democrats Ideology

The set of beliefs and political positions that characterized the Southern Democrats, focusing on states' rights, racial segregation, and conservative values.

Nonslaveholders

Individuals who did not own slaves, especially pertinent in historical contexts within societies where slavery was prevalent.

Whig Slaveholders

A term referring to individuals who were part of the Whig Party in the United States and owned slaves, highlighting the intersection of political affiliation and slave ownership in American history.

Andrew Jackson

The seventh President of the United States (1829-1837), known for his policies regarding the Indian Removal Act and being a founder of the Democratic Party.