Under the indirect method,which of the following is not an item that is added back to net income in determining net cash flow from operating activities?
A) Decrease in accounts receivableAccounts Receivable
B) Decrease in inventory
C) Depreciation expense
D) Gain on sale of store fixtures

Question

Quizplus · Accepted Answer

Net cash flow from operating activities = Net income +/- Adjustments to reconcile net income to net cash flow from operating activities
Net cash flow from operating activities = Net income - Increase in current assets + Decrease in current assets + Increase in current liabilities - Decrease in current liabilities + Depreciation expense - Gain on sale of equipment + Loss on sale of equipment

Under the Indirect Method,which of the Following Is Not an Item