When computing the net cash provided by operating activities using the indirect approach on the statement of cash flows, which item below would NOT be added to net income?
A)Depreciation.
B)Loss on the sale of an asset.
C)Decrease in accounts payable.
D)Decrease in prepaid expenses.

Question

Quizplus · Accepted Answer

Decrease in accounts payable is a source of cash, so it would be subtracted from net income when computing the net cash provided by operating activities using the indirect approach on the statement of cash flows.

When Computing the Net Cash Provided by Operating Activities Using