In using the indirect method to prepare the statement of

cash flows, which of the following is not an adjustment when using the accrual

basis net income to derive the net cash flow from operating

activities?Answer

a.

Add decreases in most current assets other than

cash

b.

Subtract depreciation

c.

Add increases in most current liabilities

d.

Subtract decreases in most current liabilities

I think that the answer is b.) Subtract depreciation