If the indirect method is used to prepare a statement of cash flows,which of the following would be added to net income to arrive at net cash flows from operating activities?
A)Amortization expense.
B)Depreciatione expense.
C)Loss on sale of land.
D)All of these choices.

Question

Quizplus · Accepted Answer

Both amortization expense and depreciation expense are added back to net income in the indirect method to arrive at net cash flows from operating activities. Additionally, any loss on the sale of assets is also added back to net income. Therefore, the correct choice is D, which includes all of these options.

If the Indirect Method Is Used to Prepare a Statement