When computing the net cash provided by operating activities under the indirect method on the statement of cash flows, a decrease in common stock would be subtracted from net income.

Question

Quizplus · Accepted Answer

A decrease in common stock would not be included in the computation of net cash provided by operating activities using the indirect method on the statement of cash flows. It would be a financing activity and reflected in the financing section of the cash flow statement.

When Computing the Net Cash Provided by Operating Activities Under