To prepare the statement of cash flows using the indirect method,interest income is ________.
A)added to net income
B)subtracted from net income
C)already included in net income
D)included as an item in the financing section

Question

Quizplus · Accepted Answer

Interest income is already included in the calculation of net income, so when using the indirect method to prepare the statement of cash flows, it is not separately added or subtracted because the starting point is the net income figure.

To Prepare the Statement of Cash Flows Using the Indirect