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Which of the following would be subtracted from net income using the indirect method quizlet?

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Which of the following would be subtracted from the net income using the indirect method?

Gain on sale of machinery would be subtracted from net income when using the indirect method of calculating cash flows provided by operating activities.

Which of the following would be a subtraction from net income when using the indirect method to determine cash flows from operating activities?

The correct answer is option [a]. A decrease in utilities payable would be subtracted from net income when determining cash flows from operating activities by the indirect method.

Which of the following would not be an adjustment to net income using the indirect method?

Answer and Explanation: Correct answer: d. An increase in Land.

What is added to net income using the indirect method?

Under the indirect method, since net income is a starting point in measuring cash flows from operating activities, depreciation expense must be added back to net income. Companies may add other expenses and losses back to net income because they do not actually use company cash in addition to depreciation.

Intermediate Accounting

Financial Accounting

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Century 21 Accounting: General Journal

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Financial Accounting

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Fundamentals of Financial Management, Concise Edition

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Financial Accounting

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Which of the following would be subtracted from the net income using the indirect method?

Which of the following would be a subtraction from net income when using the indirect method to determine cash flows from operating activities?

Which of the following would not be an adjustment to net income using the indirect method?

What is added to net income using the indirect method?

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