Which of the following would be subtracted from profit using the indirect method?
A) depreciation expense
B) an increase in accounts receivable
C) an increase in accounts payable
D) a decrease in prepaid expenses

Question

Quizplus · Accepted Answer

An increase in accounts receivable is subtracted from profit when using the indirect method because it represents income that has been recognized but not yet received in cash, thus not contributing to the cash flow.

Which of the Following Would Be Subtracted from Profit Using