Which of the following items is deducted from net income to arrive at cash flow from operations when using the indirect method?
A) depreciation expense
B) amortization expense
C) decrease in accounts receivable
D) decrease in accounts payable

Question

Quizplus · Accepted Answer

A decrease in accounts payable is deducted from net income because it represents a cash outflow, indicating that the company has paid off some of its liabilities.

Which of the Following Items Is Deducted from Net Income