When Preparing a Statement of Cash Flows on the Indirect

Multiple Choice

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

A) An increase in accounts receivable.
B) A decrease in accounts payable.
C) A gain from disposal of a long-term asset
D) An increase in prepaid expenses.
E) A decrease in accrued expenses payable.