When preparing the operating activities section of the statement of cash flows using the indirect method, decreases in current operating assets are added to net income.

Name: When preparing the operating activities section of the statement of cash flows using the indirect method, decreases in current operating assets are added to net income.
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Question

Quizplus · Accepted Answer

Decreases in current operating assets indicate that cash was received, so they are added back to net income in the indirect method.

When Preparing the Operating Activities Section of the Statement of Cash