Which of the following is NOT a correct practice when adjusting net income to net operating cash flows?
A) Subtract depreciation expense.
B) Add losses on sales of assets.
C) Subtract increase in Accounts Receivable.
D) Add increase in Accounts Payable.

Question

Which of the following is NOT a correct practice when adjusting net income to net operating cash flows?
A)	Subtract depreciation expense.
B)	Add losses on sales of assets.
C)	Subtract increase in Accounts Receivable.
D)	Add increase in Accounts Payable.

Quizplus · Accepted Answer

Depreciation expense is a non-cash charge and should be added back to net income when adjusting to net operating cash flows, not subtracted.

Which of the Following Is NOT a Correct Practice When