When using the indirect method to calculate and report the net cash provided or used by operating activities, net income is adjusted for:
A) Gains and losses from nonoperating items.
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) Changes in current liabilities related to operating activities.
E) All of these.

Question

Quizplus · Accepted Answer

The indirect method adjusts net income for gains and losses from nonoperating items, revenues and expenses that did not involve cash, and changes in noncash current assets and current liabilities related to operating activities.

When Using the Indirect Method to Calculate and Report the Net