In preparing a statement of cash flows under the INDIRECT method, cash flows from operating activities
A)are always equal to accrual accounting income.
B)are calculated as the difference between revenues and expenses.
C)can be calculated by appropriately adding to or deducting from net income those items in
The income statement that do not affect cash.
D)can be calculated by appropriately adding to or deducting from net income those items in
The income statement that do affect cash.

Question

Quizplus · Accepted Answer

The indirect method starts with net income and adjusts for non-cash items and changes in working capital to calculate cash flows from operating activities.

In Preparing a Statement of Cash Flows Under the INDIRECT