Under the indirect method of preparing the statement of cash flows,add backs to net income include all of the following except:
A) depreciation expense
B) deferred tax expense
C) gains on sale of equipment
D) share-based compensation

Question

Quizplus · Accepted Answer

Gains on sale of equipment are not added back to net income under the indirect method of preparing the statement of cash flows.

Under the Indirect Method of Preparing the Statement of Cash