Question

On the statement of cash flows prepared by the indirect method, the cash flows from operating activities section would include a. payments for cash dividends b. amortization of premium on bonds payable c. receipts from the issuance of common stock d. receipts from the sale of investments

Answer 1

Answer:

b. amortization of premium on bonds payable

Explanation:

The Indirect method reconciles the Operating Income to the Operating Cash Flow by adjusting the Operating Income for (1) Non-Cash Items previously added or deducted from the Operating Income and (2) Changes in working capital items.