On a statement of cash flows(indirect method),which line item is NOT reported as an operating activity?
A)Depreciation expense
B)Net income
C)Increase in inventory
D)Repayment of long-term debt

Question

Quizplus · Accepted Answer

Repayment of long-term debt is reported as a financing activity on the statement of cash flows under the indirect method. Depreciation expense and net income are both reported as operating activities, while an increase in inventory is also reported as an operating activity under the indirect method.

On a Statement of Cash Flows(indirect Method),which Line Item Is