In preparing cash flows provided by operating activities using the indirect method,which of the following is not deducted from net income?
A)Gains on investing and financing transactions
B)Increases in current asset balances
C)Decreases in current liability balances
D)Non-cash expenses such as depreciation

Question

Quizplus · Accepted Answer

Non-cash expenses like depreciation are added back to net income in the indirect method, not deducted.

In Preparing Cash Flows Provided by Operating Activities Using the Indirect