While preparing a statement of cash flows using the indirect method,an increase in current assets is added to net income to arrive at net cash flow from operating activities.

Name: While preparing a statement of cash flows using the indirect method,an increase in current assets is added to net income to arrive at net cash flow from operating activities.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

An increase in current assets is subtracted from net income because it represents a use of cash, reducing the net cash flow from operating activities.

While Preparing a Statement of Cash Flows Using the Indirect