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Question

the indirect method adjusts net income for items that [...] but did not affect cash.

Answer
affected reported net income

Question

the indirect method adjusts net income for items that [...] but did not affect cash.

Answer
?

Question

the indirect method adjusts net income for items that [...] but did not affect cash.

Answer
affected reported net income
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Subject 2. Preparing the Cash Flow Statement
ows from operating activities fall into three categories: non-cash expenses, timing differences, and non-operating gains and losses. Adjustments reconcile net income (accrual basis) to net cash flows from operating activities. In other words, <span>the indirect method adjusts net income for items that affected reported net income but did not affect cash. The four-step process: 1. Start with net income. 2. Add back non-cash charges such as depreciation and amortization of intangibles. Cash payments

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