If a Company Uses the Indirect Method to Determine Cash

question 98

Multiple Choice

If a company uses the indirect method to determine cash flows from operating activities:

• A)gains must be added to net income and losses subtracted from net income.
• B)gains and losses must be added to net income.
• C)gains must be subtracted from net income and losses added to net income.
• D)gains and losses must be subtracted from net income.

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