Which of the following statements are false when using the indirect method?
A) A loss on the sale of equipment is added to net income in calculating cash provided by operating activities.
B) An increase in accounts receivable during a period is deducted from net income in calculating cash provided by operating activities.
C) An increase in accounts payable during a period is added to net income in calculating cash provided by operating activities.
D) A decrease in accumulated depreciation during a period is added to net income in calculating cash provided by operating activities.
Correct Answer:
Verified
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