Which of the following is a correct statement of one of the rules for converting net income to the cash flow from operating activities using the indirect method?

A. Decreases in current assets are subtracted from net income.
B. All noncash expenses and losses are subtracted from net income.
C. Increases in current assets are added to net income.
D. Increases in current liabilities are added to net income.


Answer: D

Business

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