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To Convert Information from Your Income Statement to Your Cash

Question 26

Multiple Choice

To convert information from your income statement to your cash flow statement,which of the following would you NOT do?


A) Take your net profit and add back depreciation.
B) Add increases in accounts receivable.
C) Subtract increase in inventory.
D) Add increases in accounts payable.
E) Subtract decrease in notes/loans payable.

Correct Answer:

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