Under the indirect method of preparing the statement of cash flows,an increase in accounts payable is added to net income to determine cash flow from operating activities.

Name: Under the indirect method of preparing the statement of cash flows,an increase in accounts payable is added to net income to determine cash flow from operating activities.
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Question

Quizplus · Accepted Answer

Under the indirect method, changes in current liabilities such as accounts payable are added to net income to determine cash flow from operating activities.

Under the Indirect Method of Preparing the Statement of Cash