Which of the following is an adjustment that would need to be made to net income when calculating cash flows from operations under the indirect method?
A) Subtract depreciation expense
B) add depreciation expense
C) add an increase in accounts receivable
D) add a decrease in accounts payable

Question

Quizplus · Accepted Answer

Depreciation expense is a non-cash charge, so it is added back to net income when calculating cash flows from operations using the indirect method.

Which of the Following Is an Adjustment That Would Need