Which of the following statements does not correctly describe an adjustment to net income when determining...
Which of the following statements does not correctly describe an adjustment to net income when determining cash flows from operating activities using the indirect method?
An increase in wages payable will be added to net income.
A gain on the sale of a depreciable asset will be subtracted from net income.
An increase in prepaid expenses will be subtracted from net income.
An increase in income taxes payable will be subtracted from net income.
Homework Answers
|
An increase in income taxes payable will be subtracted from net income. |
|
| When indirect method is used for cash flow statements, increase in liabilities must be adjusted to net income by adding. | |
| So the statement is not true |
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Which of the following statements does not correctly describe an
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Determining Net Income from Net Cash Flow from Operating
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Determining Net Income from Net Cash Flow from Operating Activities Curwen Inc. reported net cash flow...
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Curwen Inc. reported net cash flow from operating activities of $201,300 on its statement of cash...
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Determining Net Income from Net Cash Flow from Operating
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Curwen Inc. reported net cash flow from operating activities of
$196,600 on its statement of cash flows for the year ended December
31. The following information was reported in the Cash Flows from
Operating Activities section of the statement of cash flows, using
the indirect method:
Determining Net Income from Net Cash Flow from Operating Activities Curwen Inc. reported net cash flow from operating activities of $196,600 on its statement...
Determining Net Income from Net Cash Flow from Operating Activities Curwen Inc. reported net cash flow from operating activities of $227,600 on its statement of cash flows for the year ended December 31. The following information was reported in the "Cash flows from operating activities" section of the statement of cash flows, using the indirect method: Decrease in income taxes payable $4,100 Decrease in inventories 10,300 Depreciation 15,900 Gain on sale of investments 7,200 Increase in accounts payable 2,900 Increase...
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