To prepare a statement of cash flows (indirect method), which of the following items should be added back to net income to derive "cash flow from operating activities?"

A. Depreciation expense.
B. Increase in accounts receivable.
C. Loss on a sale of equipment.
D. Two of the above are correct.

Ans: D. Two of the above are correct.

Business

You might also like to view...

Once a contract for deed is signed by the parties, buyer immediately receives:

A. a life estate B. legal title C. equitable title D. the right to lease the property

Business

Receivers of a message generally see a source as credible if they perceive the source to have expertise, trustworthiness, and ________

A) congruity B) "borrowed interest" devices C) likability D) appeals E) experience

Business