Under the indirect method,an increase in accounts receivable during the year will be added to net income.

Name: Under the indirect method,an increase in accounts receivable during the year will be added to net income.
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Under the indirect method, an increase in accounts receivable during the year is subtracted from net income to calculate cash flow from operating activities, because it represents income that has been recognized but not yet received in cash.

Under the Indirect Method,an Increase in Accounts Receivable During the Year