An increase in accounts receivable is reported on the statement of cash flows under the indirect method as an addition.

Name: An increase in accounts receivable is reported on the statement of cash flows under the indirect method as an addition.
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An increase in accounts receivable is reported on the statement of cash flows under the indirect method as a deduction because it represents revenue that has been recognized but not yet received in cash, thus reducing the cash flow.

An Increase in Accounts Receivable Is Reported on the Statement