Avatar Auto Parts Company uses the indirect method to prepare the statement of cash flows. Refer to the following section of the comparative balance sheet: How will the change in Accounts Payable be shown on the statement of cash flows?
A) as an addition to Net Income
B) as a deduction from Net Income
C) as a deduction from investing cash flows
D) as an addition to operating cash flows

Question

Avatar Auto Parts Company uses the indirect method to prepare the statement of cash flows. Refer to the following section of the comparative balance sheet:  How will the change in Accounts Payable be shown on the statement of cash flows?
A) as an addition to Net Income 
B) as a deduction from Net Income 
C) as a deduction from investing cash flows 
D) as an addition to operating cash flows

Quizplus · Accepted Answer

The Answer of Avatar Auto Parts Company uses the indirect method to prepare the statement of cash flows. Refer to the following section of the comparative balance sheet:  How will the change in Accounts Payable be shown on the statement of cash flows?
A) as an addition to Net Income 
B) as a deduction from Net Income 
C) as a deduction from investing cash flows 
D) as an addition to operating cash flows

Avatar Auto Parts Company Uses the Indirect Method to Prepare