Which of the following is added to net income as an adjustment under the indirect method of preparing the statement of cash flows?
A)Salaries payable increase.
B)Gain on the sale of land.
C)Inventory increase.
D)Accounts receivable increase.

Question

Quizplus · Accepted Answer

An increase in salaries payable indicates that expenses recognized in net income were not paid in cash, so it is added back to net income in the cash flow statement.

Which of the Following Is Added to Net Income as an Adjustment