When using the indirect method, which of the following would NOT be needed to determine net cash provided by operating activities?
A) depreciation expense
B) change in accounts receivable
C) payment of cash dividends
D) change in prepaid expenses

Question

Quizplus · Accepted Answer

The indirect method for calculating net cash provided by operating activities starts with net income and then adjusts for non-cash expenses, changes in working capital, and other items. Payment of cash dividends is related to financing activities, not operating activities, hence it is not needed in the calculation of net cash provided by operating activities.

When Using the Indirect Method, Which of the Following Would