If a change in accounts payable was added back to net income on the statement of cash flows prepared using the indirect method,then the amount owed to suppliers during the period had decreased.

Question

Quizplus · Accepted Answer

A change in accounts payable being added back to net income on the statement of cash flows indicates that accounts payable increased during the period, meaning the company owed more to suppliers, not less.

If a Change in Accounts Payable Was Added Back to Net