Using the indirect method to calculate the net cash provided (or used)by operating activities,net income is adjusted for:
A) Gains and losses from investing and financing activities.
B) Revenues and expenses that did not provide or use cash.
C) Changes in noncash current assets and current liabilities related to operating activities.
D) Gains and losses from investing and financing activities and revenues and expenses that did not provide or use cash.
E) All of these answers are correct.

Question

Quizplus · Accepted Answer

The indirect method adjusts net income for gains and losses from investing and financing activities, revenues and expenses that did not involve cash, and changes in noncash current assets and liabilities.

Using the Indirect Method to Calculate the Net Cash Provided