Excerpts from Deblois Corporation's comparative balance sheet appear below: Which of the following is the correct treatment within the operating activities section of the statement of cash flows using the indirect method?
A)The change in Accounts Payable is added to net income; The change in Accrued Liabilities is subtracted from net income
B)The change in Accounts Payable is added to net income; The change in Accrued Liabilities is added to net income
C)The change in Accounts Payable is subtracted from net income; The change in Accrued Liabilities is added to net income
D)The change in Accounts Payable is subtracted from net income; The change in Accrued Liabilities is subtracted from net income

Question

Excerpts from Deblois Corporation's comparative balance sheet appear below:  Which of the following is the correct treatment within the operating activities section of the statement of cash flows using the indirect method? 
A)The change in Accounts Payable is added to net income; The change in Accrued Liabilities is subtracted from net income 
B)The change in Accounts Payable is added to net income; The change in Accrued Liabilities is added to net income 
C)The change in Accounts Payable is subtracted from net income; The change in Accrued Liabilities is added to net income 
D)The change in Accounts Payable is subtracted from net income; The change in Accrued Liabilities is subtracted from net income

Quizplus · Accepted Answer

11ea7998_5c13_4d22_911b_23c02c726b28_TB2627_00_TB2627_00 An increase in a current liability is added to net income; a decrease in a current liability is subtracted.

Excerpts from Deblois Corporation's Comparative Balance Sheet Appear Below