When preparing the statement of cash flows using the indirect method,an increase in accounts payable would appear as:
A) a decrease in the operating activities section
B) an increase in the operating activities section
C) a use of cash in the investing activities section
D) a source of cash in the investing activities section

Question

Quizplus · Accepted Answer

An increase in accounts payable indicates that the company has delayed cash payments, which means more cash is available, thus it is added back in the operating activities section.

When Preparing the Statement of Cash Flows Using the Indirect