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Gala2k [10]
2 years ago
3

Question content area under the indirect method, expenses that do not affect cash are added to net income in the operating activ

ities section of the statement of cash flows.
true/ false
Social Studies
1 answer:
Anton [14]2 years ago
8 0

Under the indirect method, expenses that do not affect cash are added to the net income in the operating activities section of the statement of cash flows is True.

Depreciation price ought to be brought back to net profits. agencies may additionally upload other costs and losses back to net income because they do not definitely use organization coins in addition to depreciation. The coins glide direct technique determines modifications in coins receipts and payments, which are reported inside the cash waft from the operations phase.

The indirect method takes the net profits generated in a length and provides or subtracts changes inside the asset and liability bills to determine the implied coins glide. indirect technique format of the operating phase of the statement of coins flows starts offevolved with the net profits and then suggests the adjustments had to reconcile the internet profits with the coins flows from working sports.

Learn more about The indirect method here:-brainly.com/question/25717578

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