Using the indirect method, an increase in accounts receivable during a period is deducted
from net income in calculating cash provided by operations.

Question

Quizplus · Accepted Answer

This is true because an increase in accounts receivable represents a decrease in cash received from customers during the period, which needs to be deducted from net income to calculate the true cash provided by operations.

Using the Indirect Method, an Increase in Accounts Receivable During