Supplemental disclosures required by companies using the indirect method include all of the following except:
A)cash paid for interest.
B)cash paid for income tax.
C)cash paid for dividends.
D)noncash investing and financing activities.

Question

Quizplus · Accepted Answer

Cash paid for dividends would be reported as a cash outflow from financing activities.All companies are required to report material investing and financing transactions that did not have cash flow effects (called noncash investing and financing activities).Supplemental disclosures for companies using the indirect method include the amount of cash paid for interest and for income taxes.

Supplemental Disclosures Required by Companies Using the Indirect Method Include