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when using the indirect method of converting net income to net cash flow?
a. Depreciation.
b. Increase in accounts receivable
c. Purchase of fixed assets
d. Dividends paid.
a. Depreciation increase the net cash flow from operating activities
According to the above point we can consider the depreciation that it will increase the net cash flow from operating activities
Depreciation it's an expense that does not required cash outlay thus increases cash flow
Depreciation is a non cash expense and it decreases the net income of an entity but does not affect the cash cash account. So it will increase the net cash flow from operating activities.
So, Choice A is the correct answer for this question.
Depreciation will increase the cash flow from Operating activities by adding back.
Option (A).... Depreciation.........!!!
A) Depreciation which is the correct answer.
answer A : is the correct answer
1- indirect method for preparing Cash Flow use all non cash expense to reconcile from net income (financial reporting )
2- as MR ASIF KHAN
Explain in his words was great answer was correct
the correct words
a. Depreciation.
a non cash expense ,all other will decrease cash flow and and they not operational