Using the indirect method, which of the following would not be needed to determine net cash provided by operating activities?
A)depreciation expense
B)change in accounts receivable
C)payment of cash dividends
D)change in prepaid expenses

Question

Quizplus · Accepted Answer

Payment of cash dividends is related to financing activities, not operating activities. The indirect method focuses on adjustments to net income for changes in balance sheet accounts that affect cash flows from operations, such as accounts receivable, prepaid expenses, and depreciation expense.

Using the Indirect Method, Which of the Following Would Not