Which of the following is NOT an adjustment to reconcile net income to cash from operating activities?
A) Increase or decrease in an accrued liability
B) Amortization of premium or discount on bonds payable
C) Cash dividend declared but not yet paid
D) Increase or decrease in a prepaid expense

Question

Quizplus · Accepted Answer

Cash dividends declared but not yet paid are related to financing activities, not operating activities. Adjustments for net income to cash from operating activities typically involve changes in working capital accounts (like accrued liabilities and prepaid expenses) and non-cash expenses (like amortization).

Which of the Following Is NOT an Adjustment to Reconcile