To Prepare the Statement of Cash Flows Using the Indirect

question 57

Multiple Choice

To prepare the statement of cash flows using the indirect method,depreciation expense is ________.

• A)added to net income
• B)subtracted from net income
• C)included as an item in the financing section
• D)included as an item in the investing section

---

Definitions:

QuickBooks

An accounting software package developed and marketed by Intuit, used by small and medium-sized businesses for bookkeeping.

Accounts Payable

Money owed by a company to its creditors for goods or services that have been delivered or used but not yet paid for.

Accounts Payable Reports

Documents that detail the amounts owed by a company to its suppliers or creditors for goods and services received.

Tracking Accounts

Monitoring the activity within financial accounts to ensure accuracy, detect fraud, or manage finances.