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

Name: Interest expense is one item added to net income as per the income statement to arrive at net cash flows from operating activities.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Interest expense is actually subtracted from net income to arrive at operating cash flows, as it is a non-cash expense that is included in net income.

Interest Expense Is One Item Added to Net Income as Per