单选题 Which of the following statements about the indirect method of calculating the statement of cash flows is least accurate?

A. Depreciation is added back to net income because it is an expense not requiring cash.
B. No adjustment is needed to account for changes in accounts receivable because no cash is involved.
C. No adjustment is needed for the payment of taxes because the tax payment is already in net income.

【正确答案】 B

【答案解析】Using the indirect method requires adjusting for change in working capital accounts such as accounts receivable, inventory, and accounts payable. Extraordinary items are reported below income from continuing operations but above net income.