When preparing the operating section of the statement of cash flows using the indirect method,nonoperating gains are added back to net income.

Name: When preparing the operating section of the statement of cash flows using the indirect method,nonoperating gains are added back to net income.
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Question

Quizplus · Accepted Answer

Nonoperating gains are subtracted from net income in the indirect method because they are not related to operating activities and were included in net income.

When Preparing the Operating Section of the Statement of Cash