Using the indirect method of preparing the statement of cash flows,which of the following would be added to net income?
A)depletion expense
B)an increase in accounts receivable
C)a decrease in accounts payable
D)gain on the sale of property

Question

Quizplus · Accepted Answer

Depletion expense is a non-cash expense similar to depreciation and amortization, and it is added back to net income in the operating activities section of the cash flow statement when using the indirect method.

Using the Indirect Method of Preparing the Statement of Cash