In preparing a statement of cash flows under the indirect method, an increase in accounts payable would be reported as a(n):

Name: In preparing a statement of cash flows under the indirect method, an increase in accounts payable would be reported as a(n):
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An increase in accounts payable indicates that expenses have been incurred but not yet paid, which means cash has not been used. Therefore, it is added back to net income in the operating activities section to adjust for the non-cash expense.

In Preparing a Statement of Cash Flows Under the Indirect