In calculating the net cash provided by or used in operations using the indirect method,which of the following items would be added to net income?
A)An increase in Accounts Receivable.
B)A decrease in Prepaid Rent.
C)An increase in long-lived assets.
D)A decrease in Salaries and Wages Payable.

Question

Quizplus · Accepted Answer

Decreases in current assets and increases in current liabilities are added to Net Income to arrive at net cash provided by or used in operations.Increases in current assets or decreases in current liabilities are subtracted from Net Income to arrive at net cash provided by or used in operations.

In Calculating the Net Cash Provided by or Used in Operations