If a company uses the indirect method to prepare the statement of cash flows, which of the following items would be added to net income to determine the net cash flow from operating activities?

A) An increase in inventory added to net income to determine the net cash flow from operating activities in the statement of cash flows.
B) A decrease in accounts receivable would be added to net income to determine the net cash flow from operating activities in the statement of cash flows.
C) A decrease in accounts payable would be added to net income to determine the net cash flow from operating activities in the statement of cash flows.
D) An increase in preferred dividends payable would be added to net income to determine the net cash flow from operating activities in the statement of cash flows.

B

Business

You might also like to view...

________ and ________ are both reported on a Schedule B

Fill in the blank(s) with the appropriate word(s).

View
Business

Break-even analysis is one type of cost-volume-profit analysis

Indicate whether the statement is true or false

View
Business