For each of the following operating activities, select whether it is a source of cash, a use of cash or neither under the indirect method.
-increase in Accounts Payable
A)source
B)use
C)neither

Question

Quizplus · Accepted Answer

An increase in Accounts Payable is considered a source of cash under the indirect method because it indicates that the company has received goods or services that it has not yet paid for, effectively increasing its cash position until those payables are settled.

For Each of the Following Operating Activities, Select Whether It