When using the T-account approach to preparing the indirect method of the statement of cash flows,which of the following would be associated with amounts entered on the credit side of the Cash T-account?

Question

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A decrease in Accounts Receivable would be listed as a credit in that T-account;the increase would be listed as a debit in the Cash T-account.An increase in Inventory would be listed as a debit in that T-account;the increase would be listed as a credit in the Cash T-account.A decrease in Inventory would be listed as a credit in that T-account;the increase would be listed as a debit in the Cash T-account.An increase in Accrued Liabilities would be listed as a credit in that T-account;the increase would be listed as a debit in the Cash T-account.

When Using the T-Account Approach to Preparing the Indirect Method