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When preparing the operating activities section of the statement of cash flows using the indirect method ______. Multiple select question. cash collected from customer is reported instead of revenues items that do not affect cash flow are removed from net income. net income is adjusted to a cash basis only cash payments for expenses are reported

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Cash flows is a term that is often used in business dealings. When preparing the operating activities section using the indirect method, use  Decreases in accounts receivable  and Increases in wages payable.

In the indirect method, net income is known to be a starting point in measuring cash flows from operating activities and as such depreciation expense must be added back to net income.  

Companies often add other expenses and losses back to net income. The cash flow direct method shows the changes in cash receipts and payments.

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