Using the indirect method to calculate net cash provided (or used)by operating activities,which of the following is subtracted from net income?
A) Depreciation expense.
B) Amortization of intangible assets.
C) Decrease in income taxes payable.
D) Bad debts expense.
E) None of these answers is correct.

Question

Quizplus · Accepted Answer

A decrease in income taxes payable indicates that cash was used to pay taxes, so it is subtracted from net income when calculating net cash provided by operating activities using the indirect method.

Using the Indirect Method to Calculate Net Cash Provided (Or