When using the indirect method for preparing the statement of cash flows,all of the following will appear in the Operating Activities section except
A)an increase in deferred tax.
B)depreciation expense on leased assets.
C)interest expense.
D)an increase in long-term liabilities.

Question

Quizplus · Accepted Answer

An increase in long-term liabilities would appear in the financing activities section, not the operating activities section. The other options listed could potentially appear in the operating activities section.

When Using the Indirect Method for Preparing the Statement of Cash