When Preparing the Statement of Cash Flows Using the Indirect

question 101

Multiple Choice

When preparing the statement of cash flows using the indirect method,which statement is FALSE?

• A)Gains on the sale of long-term assets are subtracted from net income.
• B)Losses on the sale of long-term assets are subtracted from net income.
• C)Depreciation expense is added to net income.
• D)Increases in current liabilities are added to net income.