When preparing the statement of cash flows using the indirect method, which of the following is subtracted from net income to determine cash flows from operations?
A) losses from equity method investments
B) increases in deferred-tax assets
C) bond discount amortization
D) unrealized gains from available-for-sale securities

Question

Quizplus · Accepted Answer

Increases in deferred-tax assets are subtracted from net income because they represent a non-cash increase in tax assets, reducing cash flow from operations.

When Preparing the Statement of Cash Flows Using the Indirect