When preparing the statement of cash flows using the indirect method, which statement is NOT true?
A)Depreciation expense is added to net income.
B)Gains on the sale of long-term assets are subtracted from net income.
C)Losses on the sale of long-term assets are subtracted from net income.
D)Increases in current liabilities are added to net income.

Question

Quizplus · Accepted Answer

Losses on the sale of long-term assets are actually added to net income in the indirect method, not subtracted.

When Preparing the Statement of Cash Flows Using the Indirect