Which of the following adjustments to net income is NOT correct if you want to calculate cash flow from operating activities?
A) Add increases in accounts payable
B) Add increases in accounts receivable
C) Add back depreciation
D) Depreciation is deducted when calculating net income
B
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Order quantity decisions are typically made in isolation from considerations of transportation, packaging, and material handling
Indicate whether the statement is true or false.
A tailor agrees to sew a suit for Bryan, who promises in return to pay $1,200 for the suit if he is satisfied with it. The tailor completes the suit, which fits Bryan perfectly. Nevertheless, he says that he is not satisfied and refuses to accept or pay for it. Bryan is honest in his dissatisfaction, but gives no reasonable objections. In this case:
A) Bryan must pay for the suit even if he is dissatisfied. B) this is an illusory contract, because only the tailor is bound. C) Bryan's approval is an objective standard. D) the tailor has no recourse, because he agreed to the subjective standard.