Which of the Following Is a Correct Statement of One

question 36

Multiple Choice

Which of the following is a correct statement of one of the rules for converting net income to the cash flow from operating activities using the indirect method?

• A)Increases in current liabilities are added to net income.
• B)All non-cash expenses and losses are subtracted from net income.
• C)Increases in current assets are added to net income.
• D)Decreases in current assets are subtracted from net income.