Under the indirect method, which of the following would be subtracted from net income when determining net cash flows from operations?
A) gain on the sale of a used truck
B) amortization expense
C) decrease in prepaid rent
D) increase in salaries payable

Question

Quizplus · Accepted Answer

Gains on the sale of assets are subtracted from net income in the indirect method because they are non-cash items that increase net income but do not affect cash flow from operating activities.

Under the Indirect Method, Which of the Following Would Be