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When using the indirect method to prepare a statement of cash flows, net cash flows from operating activities are determined by adding back or deducting from net income those items that had no effect on cash. Which one of the following items should be deducted from net income when determining net cash flows from operating activities? A. Amortization of bond premiums. B. A loss on the sale of plant assets. C. A decrease in accounts receivable. D. An increase in accrued liabilities. |