Under the indirect method, which of the following is NOT a proper adjustment to net income under operating activities?
A) Adding a decrease in inventory
B) Subtracting an increase in salaries payable
C) Deducting an increase in prepaid expenses
D) Subtracting a gain on the sale of equipment
E) Adding a decrease in accounts receivable
Correct Answer:
Verified
Q51: When preparing the cash flow statement by
Q52: Which would NOT be subtracted from net
Q53: In the indirect method of cash flows,
Q54: The cost of purchasing long-term assets, such
Q55: Gains on the sale of long-term assets
Q57: A decrease in prepaid insurance would be
Q58: A cash flow statement would NOT disclose:
A)
Q59: Of the following, which is NOT classified
Q60: An example of a cash inflow from
Q61: Gains and losses on the sale of
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents