In calculating cash flows from operating activities, a decrease in accounts payable during a period
A) means that accrual basis income is less than cash basis income.
B) requires an addition to net income under the indirect method.
C) requires an increase to cost of goods sold under the direct method.
D) requires a decrease to cost of goods sold under the direct method.

Question

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The Answer of In calculating cash flows from operating activities, a decrease in accounts payable during a period
A) means that accrual basis income is less than cash basis income.
B) requires an addition to net income under the indirect method.
C) requires an increase to cost of goods sold under the direct method.
D) requires a decrease to cost of goods sold under the direct method.

In Calculating Cash Flows from Operating Activities, a Decrease in Accounts