On a statement of cash flows prepared using the indirect method, an decrease in income taxes payable will be shown as something that increases operating cash flows.

Question

Quizplus · Accepted Answer

An decrease in income taxes payable would be adjusted by subtracting it from net income in the operating activities section, as it implies that less cash was paid for taxes than the expense recognized, thus decreasing operating cash flows.

On a Statement of Cash Flows Prepared Using the Indirect