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.

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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

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.

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

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