Which of the following is added to net income as an adjustment under the indirect method of preparing the statement of cash flows?
A)Salaries payable increase.
B)Gain on the sale of land.
C)Inventory increase.

Question

Quizplus · Accepted Answer

Under the indirect method of preparing the statement of cash flows, increases in current liabilities, such as salaries payable, are added to net income because they represent cash that has not yet been paid out.

Which of the Following Is Added to Net Income as an Adjustment