Given the items below,which of the following is a subtraction from net income to arrive at Operating Cash Flows using the indirect method?
I. Loss on sale of assets
II. Increase in Supplies
III. Increase in Accounts Payable
IV. Depreciation expense

A) II. only.
B) IV. only.
C) I. and II.
D) II. and III.

Question

Given the items below,which of the following is a subtraction from net income to arrive at Operating Cash Flows using the indirect method?
I.	Loss on sale of assets
II.	Increase in Supplies
III.	Increase in Accounts Payable
IV.	Depreciation expense

A)	II. only.
B)	IV. only.
C)	I. and II.
D)	II. and III.

Quizplus · Accepted Answer

An increase in supplies represents an increase in current assets, which is a subtraction from net income to arrive at operating cash flows using the indirect method.

Given the Items Below,which of the Following Is a Subtraction