Choose the appropriate letter to match the account balance change with the type of adjustment made to net income when using the indirect method to determine net cash flow provided by operating activities.
Account Balance Change
_____ Decrease in Property, Plant, and Equipment
_____ Increase in Accounts Receivable
_____ Decrease in Inventory
_____ Decrease in Prepaid Expenses
_____ Increase in Accounts Payable
_____ Decrease in Accrued Liabilities
_____ Decrease in Income Tax Payable
_____ Increase in Dividends Payable
_____ Gain on Sales of Property, Plant and Equipment
_____ Depreciation
Type of Adjustment
A - Add item to net income
S - Subtract item from net income
N - No adjustment necessary

Question

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The Answer of Choose the appropriate letter to match the account balance change with the type of adjustment made to net income when using the indirect method to determine net cash flow provided by operating activities.
Account Balance Change
_____ Decrease in Property, Plant, and Equipment
_____ Increase in Accounts Receivable
_____ Decrease in Inventory
_____ Decrease in Prepaid Expenses
_____ Increase in Accounts Payable
_____ Decrease in Accrued Liabilities
_____ Decrease in Income Tax Payable
_____ Increase in Dividends Payable
_____ Gain on Sales of Property, Plant and Equipment
_____ Depreciation
Type of Adjustment
A - Add item to net income
S - Subtract item from net income
N - No adjustment necessary

Choose the Appropriate Letter to Match the Account Balance Change