Using the indirect method, which of the following would not be needed to determine net cash provided by operating activities?
A)Depreciation expense
B)Change in accounts receivable
C)Payment of cash dividends
D)Change in prepaid expenses

Question

Quizplus · Accepted Answer

Payment of cash dividends is a financing activity and would not be included in the determination of net cash provided by operating activities through the indirect method. Depreciation expense, change in accounts receivable, and change in prepaid expenses are all operating activities and would be needed to determine net cash provided by operating activities.

Using the Indirect Method, Which of the Following Would Not