In preparing cash flows provided by operating activities using the indirect method, which of the following items is added to net income? I. Non-cash expenses such as depreciation II. Gains on investing and financing transactions III. Increases in inventory balances IV. Decreases in accounts payable balances a- I and IV only b- II and III only c- II, III and IV only d- I only
In preparing cash flows provided by operating activities using the indirect method, which of the following items is added to net income? I. Non-cash expenses such as depreciation II. Gains on investing and financing transactions III. Increases in inventory balances IV. Decreases in accounts payable balances a- I and IV only b- II and III only c- II, III and IV only d- I only
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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In preparing
I. Non-cash expenses such as
II. Gains on investing and financing transactions
III. Increases in inventory balances
IV. Decreases in accounts payable balances
a- I and IV only
b- II and III only
c- II, III and IV only
d- I only
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