Answered: Which of the following should be…

Which of the following should be subtracted from net income in computing net cash flows from operating activities using the indirect method?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter16: Statement Of Cash Flows

Section: Chapter Questions

Problem 5EA: What adjustment(s) should be made to reconcile net income to net cash flows from operating...

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Question

Which of the following should be subtracted from net income in computing net cash flows from operating activities using the indirect method?

a.A decrease in accounts receivable

b.A loss on a sale of equipment

c.An increase in accounts payable

d.A gain on a sale of equipment

Definition Definition Money that the business will be receiving from its clients who have utilized the credit provided to buy its goods and services. The credit period typically lasts for a short term, lasting from a few days, a few months, to a year.

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