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

Question

Quizplus · Accepted Answer

An increase in accrued liabilities would be added to net income because it represents an expense that was recognized in the income statement but not yet paid in cash, thus it does not affect cash flow from operations in that period.

A Company Uses the Indirect Method to Prepare the Statement