Given the Items Below,which of the Following Is an Addition

question 140

Multiple Choice

Given the items below,which of the following is an addition to net income to arrive at operating cash flows using the indirect method? I.Loss on sale of assets
II) Increase in Supplies
III) Increase in Accounts Payable
IV) Increase in Accounts Receivable

• A)I.and III.
• B)I.only.
• C)III.and IV.

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Definitions:

Increase

A rise in value or quantity, often observed in financial metrics, operational metrics, or physical measurements.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, indicative of the shareholders' ownership interest.

Creditors

Individuals or institutions to whom money is owed by a debtor for goods, services, or loans provided.

Investors

Persons or organizations that invest funds anticipating financial gains in return.