Solved

A Company Uses the Indirect Method to Prepare the Statement

Question 94

Multiple Choice

A company uses the indirect method to prepare the statement of cash flows. Which of the following items would be subtracted from net income in determining the net cash flow from operating activities?


A) An increase in dividends payable would be subtracted from net income.
B) A loss on the sale of equipment would be subtracted from net income.
C) A gain on the sale of equipment would be subtracted from net income.
D) Depreciation expense would be subtracted from net income.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents