Which of the following is a correct statement of one of the rules for converting net income to the cash flow from operating activities using the indirect method?
A)All noncash expenses and losses are subtracted from net income.
B)Increases in current liabilities are added to net income.
C)Increases in current assets are added to net income.
D)Decreases in current assets are subtracted from net income.

Question

Quizplus · Accepted Answer

Increases in noncash current liabilities are added to and decreases in noncash current liabilities are subtracted from net income to determine net cash flow from operating activities.Decreases in noncash current assets are added to and increases in noncash current assets are subtracted from net income to determine net cash flow from operating activities.Noncash expenses and losses are added to and gains are subtracted from net income to determine net cash flow from operating activities.

Which of the Following Is a Correct Statement of One