Which of the Following Is Not an Item Added Back

question 49

Multiple Choice

Which of the following is not an item added back to income in the operations section of the statement of cash flows when using the indirect presentation?

• A)Depreciation
• B)Amortization of goodwill
• C)Increase in deferred income taxes
• D)Amortization of bond premium
• E)Amortization of patents

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Definitions:

GAAP

Generally Accepted Accounting Principles, a set of accounting standards and procedures used in the U.S. to govern financial reporting and ensure consistency.

Accounting Standards

Rules and guidelines used in the preparation and presentation of financial statements to ensure accuracy, completeness, and consistency.

Asset

Anything of value owned by a company.