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 payable 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 payable will be shown as a positive cash flow in the adjustments to Net income.

Quizplus · Accepted Answer

The change in accounts payable will be shown as a negative cash flow in the adjustments to Net income under the indirect method.

Avatar Company Uses the Indirect Method to Prepare the Statement