when cash from operating activities is presented using the indirect method, net income must be adjusted for the components that increase and decrease in balance sheet accounts that relate to: multiple choice question. all current assets and liabilities. all long-term assets and liabilities. changes in equity. amounts presented in the income statement.

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16-11-2022
Business

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when cash from operating activities is presented using the indirect method, net income must be adjusted for the components that increase and decrease in balance sheet accounts that relate to: multiple choice question. all current assets and liabilities. all long-term assets and liabilities. changes in equity. amounts presented in the income statement.

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ayfat23 ayfat23 · Answer 1 · 2022-11-30T11:41:50+01:00

When cash from operating activities is presented using the indirect method, net income must be adjusted for increases and decreases in balance sheet accounts that relate to amounts presented in the income statement.

What is Operating activities?

Operating activities serves as the functions of a business which is related directly in providing its goods and/or services to the market.

It should be noited that the An income statement which is a financial statements that provide the company's financial performance in an accounting period is needed when making adjustment for net income increases and decreases.

Therefore, the last option is correct.

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