An increase in accounts payable is
A) added to the net income when determining the net cash provided by operating activities.
B) subtracted from the net income when determining the net cash provided by operating activities.
C) added to the cash flows from investing activities.
D) not used to calculate the net cash provided by operating activities.

Question

Quizplus · Accepted Answer

An increase in accounts payable indicates that a company has delayed cash payments, which means more cash is retained in the business, thus it is added to net income in the operating activities section of the cash flow statement.

An Increase in Accounts Payable Is