An increase in current liabilities 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

Current liabilities other than cash are typically related to operating activities, such as accounts payable or accrued expenses. Therefore, they would appear as an addition to net income in the operating activities section when using the indirect approach on the cash flow statement.

An Increase in Current Liabilities Other Than Cash Would Appear