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Which of the Following Items Is Added to Net Income

question 114

Multiple Choice

Which of the following items is added to net income to determine cash flows from operating activities when the indirect method is used to prepare the Operating Activities category of the statement of cash flows?

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Definitions:

Internal Customers

Employees or departments within an organization that rely on other parts of the organization for products or services.

Results Of Others

The outcomes or outputs produced by individuals or groups other than oneself.

Inventory Management

The practice of overseeing and controlling the ordering, storage, and use of components that a company uses in the production of the items it sells.

Supply Chain Management

The oversight of materials, information, and finances as they move from supplier to manufacturer to wholesaler to retailer to consumer.

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