Which of the following is true about a cash flow statement using the indirect method of determining cash from operations?

Question

Quizplus · Accepted Answer

In the indirect method of determining cash flows from operations, non-cash expenses such as depreciation and losses are added back to net income, while non-cash revenues such as gains are subtracted from net income. This is done to adjust for the effects of these transactions on the income statement, which may not necessarily reflect their impact on cash flows.

Which of the Following Is True About a Cash Flow