1) A gain on the sale of long-term assets is added to net income to arrive at ne

Question

1) A gain on the sale of long-term assets is added to net income to arrive at net cash flows from operating activities under the indirect method. 2) Under the indirect method, an increase in inventory is added to net income and a decrease in inventory is subtracted from net income to arrive at net cash flows from operating activities. 3) Under the indirect method, a decrease in accounts payable is added to net income to arrive at net cash flows from operating activities. 4) Under the indirect method, an increase in accounts payable is added to net income to arrive at net cash flows from operating activities.

Explanation / Answer

Hi, If you like my answer, please rate my answer first and according to my answer...that way only I can earn points. Thanks 1) False ( Not an operating activity) 2) False ( it is subtracted) 3) False ( it is subtracted) 4) True

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.