Which of the following is a way that the Operating Activity section of the statement of cash flows adjusts Net Income from the balance sheet?
A)It subtracts all expenses and costs related to the firm's operating activities.
B)It adds all non-cash entries related to the firm's operating activities.
C)It adds the cash that flows from investors to the firm.
D)It removes the cash used for investment purposes.

Question

Quizplus · Accepted Answer

The Operating Activity section of the statement of cash flows adjusts Net Income by adding all non-cash entries related to the firm's operating activities, such as depreciation and amortization expenses. It does not subtract all expenses and costs related to the firm's operating activities or include cash flows from investors or investments.

Which of the Following Is a Way That the Operating