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:

Insurance Expense

The cost incurred by a business or individual for purchasing insurance coverage, recognized as an expense over the policy period.