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Cash Flows from Operating Activities—Indirect Method

Indicate whether each of the following would be added to or deducted from net income in determining net cash flow from operating activities by the indirect method:

a. Decrease in inventory
b. Increase in accounts receivable
c. Increase in accounts payable
d. Loss on retirement of long-term debt
e. Depreciation of fixed assets
f. Decrease in notes receivable due in 60 days from customers
g. Increase in salaries payable
h. Decrease in prepaid expenses
i. Amortization of patent
j. Increase in notes payable due in 120 days to vendors
k. Gain on disposal of fixed assets

WORD BANK:
- added
- deducted

User BeGreen
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1 Answer

15 votes
15 votes
A. added
B. deducted
C. added
D. added
E. added
F. added
G. added
H. added
I. added
J. added
K. deducted
User JamesDill
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3.0k points