Under the indirect method, which of the following items would be added to net income to determine the cash flow from operating activities?
A)Gain on the sale of equipment.
B)Decrease in the balance of accounts payable.
C)Accrued interest receivable.
D)Depreciation expense.

Question

Quizplus · Accepted Answer

Because depreciation expense reduces net income, but does not use cash for operating activities, it is added to net income.

Under the Indirect Method, Which of the Following Items Would