Which of the Following Is Subtracted from Net Income as an Adjustment

question 80

Multiple Choice

Which of the following is subtracted from net income as an adjustment under the indirect method of preparing the statement of cash flows?

• A)Salaries payable decrease.
• B)Inventory decrease.
• C)Depreciation expense.

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Definitions:

Value Chain

A model that describes the full range of activities needed to create a product or service, from initial conception through the different phases of production to the delivery to consumers.

Leading Indicators

Economic factors that change before the economy starts to follow a particular pattern or trend, used to predict future movements.

Lagging Indicators

Economic indicators that usually change after the economy as a whole does, thus confirming long-term trends.

Cognitive Bias

A systematic error in thinking or decision-making due to the brain's attempt to simplify information processing.