Which of the following items would not be included in a statement of cash flows prepared using the indirect method?
A) Net income
B) Depreciation expense
C) Sale of a plant asset
D) Cash paid for wages

Question

Quizplus · Accepted Answer

Cash paid for wages is included in the operating activities section of the cash flow statement, but it is not specifically adjusted in the indirect method, which starts with net income and adjusts for non-cash transactions and changes in working capital.

Which of the Following Items Would Not Be Included in a Statement