When Using the Indirect Method to Prepare the Statement of Cash

Multiple Choice

When using the indirect method to prepare the statement of cash flows,an increase in noncash current assets is

A) subtracted from net income in the cash flows from operating activities section.
B) subtracted from current liabilities in the cash flows from financing activities section.
C) added to net income in the cash flows from operating activities section.
D) added to equipment purchases in the cash flows from investing activities section.