When preparing the operating section of the statement of cash flows using the direct method,which of the following statements is true?
A)An increase in accounts payable is added to expenses.
B)An increase in accounts receivable is added to sales.
C)Depreciation expense is added to cash flows.
D)Gains on sales of long term assets are subtracted from cash flows.

Question

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The Answer of When preparing the operating section of the statement of cash flows using the direct method,which of the following statements is true?
A)An increase in accounts payable is added to expenses.
B)An increase in accounts receivable is added to sales.
C)Depreciation expense is added to cash flows.
D)Gains on sales of long term assets are subtracted from cash flows.

When Preparing the Operating Section of the Statement of Cash