Which of the following would not be added to net income in calculating cash flows from operating activities on a statement of cash flows prepared using the indirect method?
A)Amortization Expense.
B)A decrease in Accounts Receivable.
C)An increase in Salaries and Wages Payable.
D)A gain on sale of equipment.

Question

Quizplus · Accepted Answer

Gains and losses on disposal are included in the computation of net income,which is the starting point for the operating activities section when prepared using the indirect method.So,we subtract gains reported on disposals of property,plant,and equipment.

Which of the Following Would Not Be Added to Net