Which would be added back to net income in the operating section of an indirect cash flow statement?

Question

Quizplus · Accepted Answer

Depreciation is a non-cash expense that reduces net income but does not affect cash flows. Therefore, it is added back to net income in the operating section of the indirect cash flow statement. A decrease in accounts payable, an increase in accounts receivable, and an increase in inventory all involve changes in the company's cash flows and are reflected in the operating section of the indirect cash flow statement but not added back to net income.

Which Would Be Added Back to Net Income in the Operating