When preparing a statement of cash flows (indirect method), which of the following is not an adjustment to reconcile net income to net cash provided by operating activities?
A) A change in interest payable
B) A change in dividends payable
C) A change in income taxes payable
D) All of these are adjustments.

Question

Quizplus · Accepted Answer

Changes in dividends payable are not considered in the adjustment to reconcile net income to net cash provided by operating activities when using the indirect method. This is because dividends payable relate to financing activities, not operating activities.

When Preparing a Statement of Cash Flows (Indirect Method), Which