Which of the Following Would Be Added to Net Income

question 97

Multiple Choice

Which of the following would be added to net income in the operating activities section of a statement of cash flows prepared using the indirect method?

• A)a decrease in accounts receivable.
• B)an increase in prepaid expenses.
• C)an increase in accrued liabilities.
• D)an increase in property, plant and equipment.

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Definitions:

Good Credit Rating

An evaluation made by credit bureaus that suggests a borrower has a high likelihood of repaying borrowed money on time.

Fair Debt Collection Practices Act

A U.S. federal law designed to eliminate abusive, deceptive, and unfair debt collection practices by debt collectors.

Standard Credit Company

A hypothetical or generic name for a company that provides credit services, evaluating creditworthiness and offering loans or credit to individuals and businesses.

Equal Credit Opportunity Act

A U.S. law aimed at granting all individuals a fair opportunity to obtain credit, prohibiting discrimination based on race, color, religion, national origin, sex, marital status, age, or because someone receives public assistance.