When adjusting accrual earnings to obtain cash flows from operations,an increase in Accounts Payable is added to arrive at cash flow from operations.

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An increase in Accounts Payable is added to arrive at cash flow from operations when adjusting accrual earnings. This is because an increase in Accounts Payable represents an increase in the amount of cash that the company owes to its suppliers, which is a liability. This increase in the liability reduces the company's cash outflows in the current period, and therefore needs to be added back to the accrual earnings to arrive at the cash flow from operations.

When Adjusting Accrual Earnings to Obtain Cash Flows from Operations,an