For each of the following items, indicate whether it would appear on a statement of cash flows prepared using the Direct method (a) or the Indirect method (b).
-Decrease in accounts payable
A)Direct
B)Indirect

Question

Quizplus · Accepted Answer

Decrease in accounts payable is adjusted for in the cash flow from operating activities section of the statement of cash flows when using the Indirect method, as it reflects changes in working capital.

For Each of the Following Items, Indicate Whether It Would