Each of the following is added to net income in computing net cash provided by operating activities except
A) amortization expense.
B) an increase in accrued expenses payable.
C) a gain on sale of equipment.
D) a decrease in inventory.

Question

Quizplus · Accepted Answer

A gain on sale of equipment is subtracted from net income in the calculation of net cash provided by operating activities because it is a non-cash item that increased net income.

Each of the Following Is Added to Net Income in Computing