In which section of the Statement of Cash Flows would you add or subtract a change in Accounts Payable, and why?

Question

Quizplus · Accepted Answer

Changes in accounts payable are included in the operating section of the Statement of Cash Flows because they represent changes in the amount of expenses incurred that have not yet been paid in cash. This adjustment is necessary to reconcile net income with cash provided by operating activities, reflecting that some of the expenses reported on the income statement did not require an outlay of cash during the period.

In Which Section of the Statement of Cash Flows Would