help in homework

New User?

Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive / Under the indirect method of preparing the statement of cash flows, which of the following is added to net income in the operating activities section?   Decrease in accounts payable Gain on sale of equipment Depreciation expense Increase in accounts receivable  

Under the indirect method of preparing the statement of cash flows, which of the following is added to net income in the operating activities section?   Decrease in accounts payable Gain on sale of equipment Depreciation expense Increase in accounts receivable  

Accounting

Under the indirect method of preparing the statement of cash flows, which of the following is added to net income in the operating activities section?

 

    1. Decrease in accounts payable
    2. Gain on sale of equipment
    3. Depreciation expense
    4. Increase in accounts receivable

 

pur-new-sol

Purchase A New Answer

Custom new solution created by our subject matter experts

GET A QUOTE

Answer Preview

Answer: c .

In case of indirect method of cash flow statement,depreciation expense is added under operating activities to the net income.As depreciation expense comes under the category of non cash expense,thus it is added into net income.

Sitejabber (5.0)

BBC (5.0)

Trustpilot (4.9)

Google (5.0)