All of the following might appear on an indirect method statement of cash flows except:
A) depreciation expense
B) decrease in inventory
C) loss on sale of capital assets
D) interest received on notes receivable

Question

Quizplus · Accepted Answer

Interest received on notes receivable is typically included in the operating activities section of the cash flow statement, but it is not an adjustment item in the indirect method. The indirect method adjusts net income for non-cash transactions and changes in working capital, such as depreciation, inventory changes, and losses on asset sales.

All of the Following Might Appear on an Indirect Method