Under the indirect method, an increase in Accounts Receivable must be added to net income when computing cash from operating activities.

Name: Under the indirect method, an increase in Accounts Receivable must be added to net income when computing cash from operating activities.
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Question

Quizplus · Accepted Answer

An increase in Accounts Receivable is subtracted from net income because it represents revenue that has been recognized but not yet collected in cash.

Under the Indirect Method, an Increase in Accounts Receivable Must