When preparing a statement of cash flows using the indirect method,an increase in accounts payable is deducted from net income.

Name: When preparing a statement of cash flows using the indirect method,an increase in accounts payable is deducted from net income.
Brand: Quizplus
Rating: 4.9 (39 reviews)

Question

Quizplus · Accepted Answer

An increase in accounts payable is added to net income in the operating activities section because it represents expenses that have not yet been paid, thus increasing cash flow.

When Preparing a Statement of Cash Flows Using the Indirect