Which of the following is a deduction from net income in reconciling net income to cash flow from operating activities?
A) Amortization of bond premium
B) Cash dividend declared and paid
C) Collection of an account receivable
D) Write-off of an uncollectible account receivable

Question

Quizplus · Accepted Answer

Amortization of bond premium is a non-cash expense that is added back to net income in the reconciliation to cash flow from operating activities because it reduces net income but does not affect cash.

Which of the Following Is a Deduction from Net Income