≡ MENU

MCQs Papers Definitions Flashcards

MCQs
Papers
Definitions
Flashcards

Categories

Home—›
Statement of Cash Flow

?

Depreciation expense is added to net income under the indirect method of preparing a statement of cash flows in order to

Report all assets at gross carrying amount.Ensure depreciation has been properly reported.Reverse noncash charges deducted from net income.Calculate net carrying amount.

Correct - Your answer is correct.

Wrong - Your answer is wrong.

Detailed Answer

Answer (C) is correct. The indirect method begins with net income and then removes the effects of past deferrals of operating cash receipts and payments, accruals of expected future operating cash receipts and payments, and net income items not affecting operating cash flows (e.g., depreciation).

Related MCQs

?A statement of cash flows is intended to help users of financial statements
?Which of the following items is specifically included in the body of a statement of cash flows?
?With respect to the content and form of the statement of cash flows, the
?Depreciation expense is added to net income under the indirect method of preparing a statement of cash flows in order to
?All of the following should be classified under the operating section in a statement of cash flows except a
?Which one of the following transactions should be classified as a financing activity in a statement of cash flows?
?Kelli Company acquired land by assuming a mortgage for the full acquisition cost. This transaction should be disclosed on Kelliâ€™s statement of ...
?Which one of the following transactions should not be classified as a financing activity in the statement of cash flows?
?All of the following should be classified as investing activities in the statement of cash flows except
?All of the following should be included in the reconciliation of net income to net operating cash flow in the statement of cash flows except a(n)

Home

Privacy Policy DMCA Policy Contact Us

Copyright © 2015 accountingMCQs.com | All Rights Reserved