Which of the following is added to net income when computing net cash from operating activities under the indirect method?
A) increase in income tax payable
B) increase in deferred tax asset
C) decrease in deferred tax liability
D) increase in income tax expense

Question

Quizplus · Accepted Answer

An increase in income tax payable is added to net income because it represents taxes that have been accrued but not yet paid, indicating a source of cash.

Which of the Following Is Added to Net Income When