Which of the following would NOT be added to net income in calculating net cash flows from operating activities on a statement of cash flows prepared using the indirect method?
A) Amortization expense.
B) A decrease in accounts receivable.
C) An increase in wages payable.
D) A gain on the sale of equipment.

Question

Quizplus · Accepted Answer

A gain on the sale of equipment is subtracted from net income in the operating activities section because it is a non-cash item that is included in net income but relates to investing activities.

Which of the Following Would NOT Be Added to Net