Using the indirect method to calculate the net cash provided (or used)by operating activities,profit is adjusted for
A)Gains and losses from investing and financing activities
B)Revenues and expenses that did not provide or use cash
C)Changes in noncash current assets and current liabilities related to operating activities
D)Gains and losses from investing and financing activities and revenues and expenses that did not provide or use cash
E)All of these

Question

Quizplus · Accepted Answer

The indirect method for calculating net cash provided by operating activities involves adjusting profit for gains and losses from investing and financing activities, revenues and expenses that did not provide or use cash, and changes in noncash current assets and current liabilities related to operating activities. Therefore, all the options listed are adjustments made in the indirect method.

Using the Indirect Method to Calculate the Net Cash Provided