Avatar Company uses the indirect method to prepare the statement of cash flows. Please refer to the following section of the comparative balance sheet:
The change in accounts receivable will be shown as a positive cash flow in the adjustments to Net income.

Question

Avatar Company uses the indirect method to prepare the statement of cash flows. Please refer to the following section of the comparative balance sheet:
  The change in accounts receivable will be shown as a positive cash flow in the adjustments to Net income.

Quizplus · Accepted Answer

The change in accounts receivable is shown as a positive cash flow in the adjustments to Net income when using the indirect method for preparing the statement of cash flows.

Avatar Company Uses the Indirect Method to Prepare the Statement