Changes in current assets and current liabilities are reported on the statement of cash flows, indirect method, in the
A) operating activities
B) financing activities
C) investing activities
D) separate schedule of noncash activities

Question

Quizplus · Accepted Answer

Changes in current assets and current liabilities are reported on the statement of cash flows, indirect method, in the operating activities section. This section reports the adjustments to net income for non-cash items, such as changes in accounts receivable, accounts payable, and inventory.

Changes in Current Assets and Current Liabilities Are Reported on the Statement