Which of the following is subtracted from net income as an adjustment under the indirect method of preparing the statement of cash flows?
A)Gain on the sale of land.
B)Accounts receivable decrease.
C)Inventory decrease.

Question

Quizplus · Accepted Answer

Gain on the sale of land is subtracted from net income in the indirect method because it is a non-cash item that increased net income but did not affect cash flows.

Which of the Following Is Subtracted from Net Income as an Adjustment