Which of the Following Is an Incorrect Statement of One

question 14

Multiple Choice

Which of the following is an incorrect statement of one of the rules for converting net income to the cash flow from operating activities using the indirect method?

• A)Increases in current assets are subtracted from net income.
• B)Non-cash revenue and gains are added to net income.
• C)Decreases in current assets are added to net income.
• D)Increases in current liabilities are added to net income.

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Definitions:

Inefficiency

The state of not achieving maximum productivity; failing to make the best use of time, resources, or energy.

Technological Advances

Refers to the progress in technological development that leads to new or improved goods and services, manufacturing processes, or the development of new markets, impacting economic growth and productivity.

Berkshire Hathaway

A multinational conglomerate holding company led by Warren Buffett, known for its long-term investments in a diverse range of businesses and industries.

Treasury Bill

Short-term government securities issued at a discount from the par value and mature in a year or less, serving as a tool for managing short-term liquidity.