Identifying Operating Activities & Their Impact on Net Income

<.Back This window shows your responses and what was marked correct and incorrect from Below are a list of activities. Identify whether the activity is an increase, decrease or is not an operating ac the Operating section of the Cash Flow Statement Required: Identify how each items affects Net Income. A B C 5/5 Activity Adjustment to Net Income points awarded 2 1. Depreciation Expense Add to Net Income O Scored 3 2. Increase in Accounts Payable Add to Net Income 4 3. Gain on Sale of Assets Deduct from Net Income 5 4. Decrease in Supplies Add to Net Income 6 5. Decrease in Interest Payable Deduct from Net Income 7 6. Increase in Prepaid Rent Deduct from Net Income 8 7 Payment of Dividends Not an Operating Activity 8. Increase in Accounts Receivable Deduct from Net Income 10 9. Decrease in Cash Not an Operating Activity 11 10 Loss on Sale of Furniture Add to Net Income