When the net income is adjusted to arrive at the net cash provided by operating activities, the amount of the bond premium amortized is added to the net income.

Name: When the net income is adjusted to arrive at the net cash provided by operating activities, the amount of the bond premium amortized is added to the net income.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The amount of the bond premium amortized is deducted from the net income because it is a non-cash expense that had previously increased net income.

When the Net Income Is Adjusted to Arrive at the Net