To Prepare a Statement of Cash Flows (Indirect Method),which of the Following

question 104

Multiple Choice

To prepare a statement of cash flows (indirect method) ,which of the following items should be added back to profit to derive "cash flow from operating activities"?

• A)Depreciation expense.
• B)Increase in trade receivables.
• C)Gain on a sale of equipment.
• D)Decrease in trade payables.

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Definitions:

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An international organization founded in 1945 to promote peace, security, and cooperation among countries.

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A French physician credited with pioneering humane treatment and moral therapy for the mentally ill in the late 18th and early 19th centuries.