When Preparing a Statement of Cash Flows Using the Indirect

Multiple Choice

When preparing a statement of cash flows using the indirect method, each of the following should be classified as an operating cash flow except:

A) A decrease in accounts payable.
B) Proceeds from the disposal of a long-term asset with no gain or loss.
C) An increase in accounts receivable.
D) A decrease in accrued expenses payable.
E) An increase in prepaid expenses.