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When Preparing a Statement of Cash Flows, a Decrease in Accounts

Question 33

Short Answer

When preparing a statement of cash flows, a decrease in accounts receivable during a period would cause which one of the following adjustments in calculating cash flows from operating activities?
        ~~~~~~~~ Direct Method         ~~~~~~~~ Indirect Method
A)         ~~~~~~~~ increase         ~~~~~~~~         ~~~~~~~~ decrease
B)         ~~~~~~~~ decrease         ~~~~~~~~        ~~~~~~~~ increase
C)         ~~~~~~~~ increase         ~~~~~~~~         ~~~~~~~~ increase
D)         ~~~~~~~~ decrease         ~~~~~~~~        ~~~~~~~~ decrease

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