Using the indirect method,which of the following would be added to net income?
A)A decrease in supplies.
B)An increase in prepaid insurance.
C)A decrease in wages payable.
D)An increase in property,plant and equipment.

Question

Quizplus · Accepted Answer

A decrease in supplies indicates that supplies were used, which would have reduced net income. Therefore, it is added back to reconcile net income to cash flow from operating activities.

Using the Indirect Method,which of the Following Would Be Added