Which of the following is not an adjustment to reconcile net income to cash from operating activities?
A) Accrued liability change (increase or decrease)
B) Amortization of premium or discount on bonds payable
C) Cash dividend declared but not yet paid
D) Prepaid expense (increase or decrease)

Question

Quizplus · Accepted Answer

Cash dividends declared but not yet paid are related to financing activities, not operating activities. Adjustments for accrued liabilities, amortization of bond premiums or discounts, and changes in prepaid expenses are part of the adjustments to reconcile net income to cash provided by operating activities.

Which of the Following Is Not an Adjustment to Reconcile