Using the indirect method, which of the following would be added to net income?
A)increase in accounts receivable
B)increase in prepaid expenses
C)depreciation expense
D)decrease in accounts payable

Question

Quizplus · Accepted Answer

Depreciation expense is added back to net income in the cash flow statement when using the indirect method because it is a non-cash expense that reduced net income but did not affect cash.

Using the Indirect Method, Which of the Following Would Be