Which of the Following Statements Does Not Correctly Describe an Adjustment

question 67

Multiple Choice

Which of the following statements does not correctly describe an adjustment to net income when determining cash flows from operating activities using the indirect method?

• A)An increase in accounts receivable will be subtracted from net income.
• B)A loss on the sale of a depreciable asset will be added to net income.
• C)An increase in accrued liabilities will be subtracted from net income.
• D)An increase in accounts payable will be added to net income.

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Definitions:

Variability

The quality of being subject to change or variance in a process or outcome, often impacting predictability and consistency.

Uncoordinated Supply Chain

A supply chain where the actions and operations of participants are not synchronized, leading to inefficiencies and potential disruptions.

Supply Chain Profits

Represent the total earnings generated throughout the entire supply chain, from raw material suppliers to the final retailer.

Sales Force Incentives

Rewards or compensation given to sales personnel to motivate them to achieve sales targets, including bonuses, commissions, and non-monetary benefits.