All of the following may appear as an adjustment of net income when preparing the statement of cash flows using the indirect method EXCEPT:
A)payment of cash dividends.
B)depreciation expense.
C)loss on sale of long-term assets.
D)an increase in accounts payable.

Question

Quizplus · Accepted Answer

Payment of cash dividends is not an adjustment to net income in the operating activities section of the cash flow statement when using the indirect method. It is considered a financing activity.

All of the Following May Appear as an Adjustment of Net