Which of the following is subtracted from income when using the indirect method to determine cash flows from operations? A decrease in accounts payable Depreciation Cash dividends declared and distributed Amounts due from customers at year-end None of these choices is correct.
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QUESTION 5
-
Which of the following is subtracted from income when using the indirect method to determine
cash flows from operations?A decrease in accounts payable
Depreciation Cash dividends declared and distributed
Amounts due from customers at year-end
None of these choices is correct.
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- 13. Using the indirect method to calculate net cash provided (or used) by operating activities, which of the following is subtracted from net income? A. Decrease in Income Taxes Payable. O B. Depreciation Expense. C. Amortization of Intangible Assets. D. Bad Debts Expense. O E. None of the Above.more than one answers is correct ( )Which of the following should NOT be added to net income in calculating net cash flow from operating activities using the indirect method? A an increase in inventory B a decrease in accounts payable C a decrease in accounts receivable D preferred dividends declared and paidWhich of the following would be subtracted from net income when using the indirect method to derive net cash from operating activities? a. Decrease in accounts payable b. Loss on sale of investments c. Decrease in accounts receivable d. Depreciation expense
- 21 When preparing a statement of cash flows (indirect method), which of the following is not an adjustment to reconcile net income to net cash provided by operating activities? A change in income taxes payable A change in dividends payable A change in interest payable All of these are adjustmentsWhen preparing a statement of cash flows, a decrease in accounts receivable during a period would cause which one of the following adjustments in determining cash flow from operating activities? Direct Method Indirect Method IncreaseDecrease DecreaseIncrease IncreaseIncrease DecreaseDecreaseWhich of the following should be deducted from net income in computing net cash flows from operating activities using the indirect method? a.a decrease in accounts receivable b.preferred dividends declared and paid c.a decrease in accounts payable d.a decrease in inventory
- Which of the following items is deducted from net income to arrive at cash flow from operations when using the indirect method? a) Decrease in accounts payable b) Depreciation expense c) Amortization expense d) Decrease in accounts receivableWhich of the following should be added to net income in calculating net cash flow from operating activities using the indirect method? a.a decrease in accounts payable b.an increase in inventory c.preferred dividends declared and paid d.a decrease in accounts receivable36.When using the Indirect Method to prepare the Statement of Cash Flows under United States standards, which of the following would NOT be an adjustment to net income to reconcile it to the net flow of operating activities? Select one: a. The change in the wages payable account b. The change in the tax account pr pay. c. The change in the Dividends payable account. d. The change in the interest payable account
- If a company prepares an Indirect Method Statement of Cash Flows, which of the following items is not a proper adjustment to net income to arrive at cash flow from operating activities: Adding a decrease in Accounts Receivable Adding Bad Debt Expense Subtracting Gains from Sale of Investments Subtracting Loss on Sale of PP&EPlease no written by hand solutions when using the indirect method to calculate and report net cash from or used in operating activities, which of the following is subtracted from profit? a. decrease in wages payable b. depreciation expense c. amortisation of intangible assets d. bad debt expense e. decrease in merchandise inventoryAn increase in Accounts Receivables is : a A negative item for calculating Operating Cash Flow b Not included in the calculation of Operating Cash Flow. c A capital expenditure. d A positive item for calculating Operating Cash Flow