Which of the following should be deducted from net income in calculating net cash flow from operating activities using the indirect method?
A) a decrease in inventory
B) a decrease in accounts payable
C) preferred dividends declared and paid
D) a decrease in accounts receivable

Question

Quizplus · Accepted Answer

A decrease in accounts payable indicates that cash was used to pay off liabilities, which reduces cash flow from operating activities.

Which of the Following Should Be Deducted from Net Income