Which of the following is added to net income to reconcile to cash from operations?

Question

Quizplus · Accepted Answer

All of the choices listed are added back to net income in the cash flow statement to reconcile to cash generated from operations. A) Loss from the sale of property, plant, and equipment is added back because it is a non-cash expense that reduced net income. B) A decrease in accounts receivable is added back because it represents cash collected that was previously recorded as revenue, thus increasing cash. C) Depreciation expense is a non-cash charge against income, so it is added back to net income.

Which of the Following Is Added to Net Income to Reconcile