Bad debt expense and share-based compensation expense must be added to net income to determine cash flows from operations under the indirect method.

Name: Bad debt expense and share-based compensation expense must be added to net income to determine cash flows from operations under the indirect method.
Brand: Quizplus
Rating: 4.8 (52 reviews)

Question

Quizplus · Accepted Answer

Bad debt expense and share-based compensation expense are non-cash expenses that are added back to net income to determine cash flows from operations under the indirect method.

Bad Debt Expense and Share-Based Compensation Expense Must Be Added