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 Salaries and Wages Payable
D) An increase in 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 net income in the cash flow statement.

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