Which of the following would be deducted from net income when determining cash flows from operating activities under the indirect method?
A)An increase in accounts payable.
B)Depreciation expense.
C)A decrease in prepaid insurance.
D)A gain on the sale of a depreciable asset.

Question

Quizplus · Accepted Answer

A gain on the sale of a depreciable asset would be deducted from net income because the transaction is an investing cash flow.

Which of the Following Would Be Deducted from Net Income