In preparing cash flows provided by operating activities using the indirect method, which of the following items is added to net income?
A)Non-cash expenses such as depreciation
B)Decreases in current liability balances
C)Gains on investing and financing transactions
D)Increases in current asset balances

Question

Quizplus · Accepted Answer

Non-cash expenses such as depreciation are added back to net income to arrive at cash flows provided by operating activities using the indirect method.

In Preparing Cash Flows Provided by Operating Activities Using the Indirect