If a company uses the indirect method of calculating cash from operating activities,net income is adjusted for non-cash transactions.

Name: If a company uses the indirect method of calculating cash from operating activities,net income is adjusted for non-cash transactions.
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Question

Quizplus · Accepted Answer

The indirect method of calculating cash from operating activities starts with net income and adjusts it for non-cash transactions such as depreciation and changes in accounts receivable and payable.

If a Company Uses the Indirect Method of Calculating Cash