When using the indirect method to compute cash provided by operating activities
A) income taxes paid may be ignored.
B) amortization expense is added to net income.
C) decreases in inventory are subtracted from net income.
D) increases in accounts receivable are added to net income.

Question

Quizplus · Accepted Answer

Amortization expense is a non-cash charge and is added back to net income in the indirect method to adjust for cash flow from operating activities.

When Using the Indirect Method to Compute Cash Provided by Operating