When preparing the statement of cash flows by the indirect method,if an accrued payable decreases,the difference is:
A)added to net income.
B)added to investments.
C)deducted from net income.
D)not considered in the statement of cash flows using the indirect method.

Question

Quizplus · Accepted Answer

If an accrued payable decreases, it means that the company is paying off its accrued expenses. This decrease in the payable is not considered an expense, and therefore should be deducted from net income when preparing the statement of cash flows using the indirect method.

When Preparing the Statement of Cash Flows by the Indirect