Which of the following is added to net income as an adjustment under the indirect method of preparing the statement of cash flows?

Question

Which of the following is added to net income as an adjustment under the indirect method of preparing the statement of cash flows?

 

A. Salaries payable increase.

 

B. Gain on the sale of land.

 

C. Inventory increase.

 

D. Accounts receivable increase.

Answer 1

A. the increase in salaries payable means that less cash was paid than salaries expense.