Under the indirect method,an increase in wages payableWages Payable would be added back to net income when calculating net cash flow from operating activities.

Question

Quizplus · Accepted Answer

Wages Payable is a current liability account.An increase in current liabilities is added back to net income when calculating net cash flow from operating activities.
Question is whether to add or subtract increase in a liability,not what the balance would be.
Rewrote feedback.JMF

Under the Indirect Method,an Increase in Wages PayableWages Payable Would