All of the following might appear as adjustments to net income on an indirect method statement of cash flows except:
A)gain on sale of plant assets.
B)payment of cash dividends.
C)an increase in Accounts Receivable.
D)depreciation expense.

Question

Quizplus · Accepted Answer

The payment of cash dividends is not an adjustment to net income on an indirect method statement of cash flows. The other options - gain on sale of plant assets, increase in accounts receivable, and depreciation expense - are all adjustments that are made to net income to arrive at the operating cash flow.

All of the Following Might Appear as Adjustments to Net