An increase in current assets other than cash would appear on the cash flow statement using the indirect approach as a(n):
A) addition under financing activities
B) addition under investing activities
C) addition to net income in the operating activities section
D) deduction from net income in the operating activities section

Question

Quizplus · Accepted Answer

An increase in current assets other than cash is considered a use of cash, thus it would be deducted from net income in the operating activities section to reconcile net income to net cash provided by operating activities.

An Increase in Current Assets Other Than Cash Would Appear