When using the indirect method to calculate and report the net cash provided or used by operating activities, net income is adjusted for all but which of the following?
A) Depreciation and amortization expense.
B) Changes in current liabilities related to operating activities.
C) Gains and losses from nonoperating items.
D) Revenues and expenses that did not provide or use cash.
E) Changes in noncurrent assets and noncurrent liabilities.

Question

Quizplus · Accepted Answer

Changes in noncurrent assets and noncurrent liabilities are not adjusted in the operating activities section when using the indirect method; they are typically considered in the investing and financing sections.

When Using the Indirect Method to Calculate and Report the Net