Under the indirect method of preparing the statement of cash flows, the starting point to determine net cash from operating activities is:
A)net income.
B)the ending cash balance.
C)the beginning cash balance.
D)sales.

Question

Quizplus · Accepted Answer

The starting point to determine net cash from operating activities under the indirect method is net income, which is then adjusted for non-cash items and changes in working capital accounts to arrive at the final cash flow from operating activities.

Under the Indirect Method of Preparing the Statement of Cash