Under the indirect method, an increase in accounts payable during a period is deducted from profit in calculating cash provided by operating activities.

Name: Under the indirect method, an increase in accounts payable during a period is deducted from profit in calculating cash provided by operating activities.
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An increase in accounts payable is added to profit in the indirect method because it represents expenses that have not yet been paid in cash, thus increasing cash flow.

Under the Indirect Method, an Increase in Accounts Payable During