When preparing a statement of cash flows using the indirect method,an increase in accounts receivable is deducted from net income.

Name: When preparing a statement of cash flows using the indirect method,an increase in accounts receivable is deducted from net income.
Brand: Quizplus
Rating: 4.9 (35 reviews)

Question

Quizplus · Accepted Answer

An increase in accounts receivable is deducted from net income because it indicates that cash has not yet been received for the sales made, resulting in a decrease in operating cash flows.

When Preparing a Statement of Cash Flows Using the Indirect