How is net income adjusted for pension costs under the indirect method?
A)+ pension expense - cash contributions
B)+ pension expense + cash contributions
C)- pension expense + cash contributions
D)None of these

Question

Quizplus · Accepted Answer

Under the indirect method, net income is adjusted by adding back pension expense and subtracting cash contributions to reflect the actual cash flow impact of pension costs.

How Is Net Income Adjusted for Pension Costs Under the Indirect