Under the indirect method,losses would be added to net income when determining the amount of cash flow fromnet cash flow from operating activities.

Name: Under the indirect method,losses would be added to net income when determining the amount of cash flow fromnet cash flow from operating activities.
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Question

Quizplus · Accepted Answer

Under the indirect method, losses are added back to net income because they are non-cash expenses that reduce net income but do not affect cash flow.

Under the Indirect Method,losses Would Be Added to Net Income