When Preparing a Statement of Cash Flows Using the Indirect

question 210

Multiple Choice

When preparing a statement of cash flows using the indirect method, each of the following should be classified as an operating cash flow except:

• A) A decrease in accounts payable.
• B) Proceeds from the disposal of a long-term asset with no gain or loss.
• C) An increase in accounts receivable.
• D) A decrease in accrued expenses payable.
• E) An increase in prepaid expenses.