Listed below are reporting classifications for a statement of cash flows using the indirect method for reporting operating cash flows. Match the reporting classifications with the transactions described below.
-Operating activity, positive adjustment to net income
A)Issuance of bonds at a discount for cash.
B)Depreciation expense.
C)Acquisition of a building for cash.
D)Payment of semi-annual interest on bonds payable.
E)Decrease in accounts payable.

Question

Quizplus · Accepted Answer

Depreciation expense is a non-cash expense that is added back to net income to arrive at operating cash flows.

Listed Below Are Reporting Classifications for a Statement of Cash