问题
单项选择题
Which of the following statements about the indirect method of calculating the statement of cash flows is FALSE（）
A. No adjustment is needed to account for changes in accounts receivable since no cash was involved.
B. No adjustment is needed to account for extraordinary items because they are found above net income and are thus already accounted for.
C. Depreciation is added back to net income since it is an expense not requiring cash.
答案
参考答案：A
解析：
Extraordinary items are reported below income from continuing operations but above net income. You must adjust for changes in the working capital accounts: AR, Inv, and AP.