Which of the following items would $\textbf{ not }$ be included in the calculation of cash flows provided by operating activities using the indirect method?
A)Purchasing supplies on account
B)Net income
C)Depreciation expense
D)Gain on the sale of equipment

Question

Which of the following items would $\textbf{       not   }$ be included in the calculation of cash flows provided by operating activities using the indirect method?
A)Purchasing supplies on account
B)Net income
C)Depreciation expense
D)Gain on the sale of equipment

Quizplus · Accepted Answer

Purchasing supplies on account affects accounts payable and inventory, not directly cash flows, and is not adjusted in the indirect method.

Which of the Following Items Would not \textbf{ not } not

Which of the Following Items Would $\textbf{ not }$