Question

Indicate which of the following current assets and current liabilities are operating accounts (O) and thus included in the adjustment of net income to cash flow from operating activities and which are cash (C), investing (I), or financing (F) activities

Accrued Expenses

Answer 1

Accrued Expenses are considered operating accounts and are included in the adjustment of net income to cash flow from operating activities.

Step-by-step explanation:

Operating accounts (O) are included in the adjustment of net income to cash flow from operating activities, while cash (C), investing (I), and financing (F) activities are not included in this adjustment. Accrued Expenses are considered operating accounts because they relate to expenses that have been incurred but not yet paid for. These expenses are recorded on the income statement and are included in the calculation of net income.