Asked by Charles Griffey on Jun 14, 2024
Verified
Using the indirect method, which of the following would be added to net income?
A) increase in accounts receivable
B) increase in prepaid expenses
C) depreciation expense
D) decrease in accounts payable
Depreciation Expense
The methodical distribution of a tangible asset's cost throughout its usable life.
Net Income
The total earnings of a company after all expenses and taxes have been deducted from total revenue, often referred to as the bottom line.
Accounts Receivable
Money owed to a company by its customers for products or services that have been delivered but not yet paid for.
- Understand the concept and application of the indirect method for preparing the statement of cash flows.
Verified Answer
Learning Objectives
- Understand the concept and application of the indirect method for preparing the statement of cash flows.
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