Which one of the following is added to net income when using the indirect method to determine cash flows from operations?

Question

Quizplus · Accepted Answer

Depreciation or amortization is added because it is a non-cash expense that needs to be added back to net income. A decreased in amounts paid to reduce long-term notes and a decrease in accounts payable are subtracted from net income, while cash received from selling treasury stock is reported under financing activities.

Which One of the Following Is Added to Net Income