Which of the following should be added to net income in calculating in net cash flow from operating in activities using the indirect method A. A gain on the sell of land B. A decrease in accounts payable C. Dividends paid on common stock D.Increase on accrued expenses

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Which of the following should be added to net income in calculating in net cash flow from operating in activities using the indirect method A. A gain on the sell of land B. A decrease in accounts payable C. Dividends paid on common stock D.Increase on accrued expenses
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Non cash expenditure like depreciation should be added to net income during indirect method.  changes in working capital should be added/ deducted.

Gain on the sell of land should be deducted

Decrease in Accounts Payable should be deducted

Dividends paid on common stock is a financing activity item not an operating activity

Increase on accrued expenses is current liability should be added

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