When using the indirect method, how is the decrease in accounts payable shown on the statement of cash flows?
A) Operating activity
B) Investing activity
C) Financing activity
D) Noncash investing and financing activity

Question

Quizplus · Accepted Answer

The decrease in accounts payable is a result of reducing a liability, which is an operating activity and therefore would be shown in the operating activity section of the statement of cash flows under the indirect method.

When Using the Indirect Method, How Is the Decrease in Accounts