Which of the Following Statements Does Not Correctly Describe an Adjustment

question 95

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 wages payable will be added to net income.
• B)A gain on the sale of a depreciable asset will be subtracted from net income.
• C)An increase in prepaid expenses will be subtracted from net income.
• D)An increase in income taxes payable will be subtracted from net income.

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Definitions:

Population Mean

The average value of all individuals or items in a defined population.

Confidence Coefficient

The probability level associated with a confidence interval, indicating the frequency with which an estimated interval would include the parameter if the experiment were repeated.

T Value

A value computed from a sample data used in a t-test in statistics that measures the size of the difference relative to the variation in your sample data.

Confidence Interval

A swath of numerical values, from statistics of a sample, aimed at covering the unascertained value of a population parameter.