Interest received is one item deducted from net income as per the income statement to arrive at net cash flows from operating activities.

Name: Interest received is one item deducted from net income as per the income statement to arrive at net cash flows from operating activities.
Brand: Quizplus
Rating: 4.9 (40 reviews)

Question

Quizplus · Accepted Answer

Interest received is a cash inflow and therefore added back to net income to arrive at net cash flows from operating activities in the indirect method of preparing the statement of cash flows.

Interest Received Is One Item Deducted from Net Income as Per