Which of the following is deducted from net income as an adjustment under the indirect method of preparing the statement of cash flows?
A)Salaries payable decrease.
B)Inventory decrease.
C)Depreciation expense.
D)Accounts receivable decrease.

Question

Quizplus · Accepted Answer

A decrease in salaries payable indicates that cash was used to pay off the liability, thus it is deducted from net income in the cash flow statement.

Which of the Following Is Deducted from Net Income as an Adjustment