All of the following would be done when calculating the change in cash from operating activities under the indirect method except
A)deduct the purchase of equipment.
B)add an increase in accrued interest payable.
C)add a decrease in merchandise inventory.
D)deduct a decrease in accounts payable.

Question

Quizplus · Accepted Answer

Deducting the purchase of equipment is a cash outflow from investing activities, and is not relevant to calculating the change in cash from operating activities under the indirect method. The other options all directly affect cash flow from operating activities.

All of the Following Would Be Done When Calculating the Change