When preparing the operating section of the statement of cash flows using the indirect method,a decrease in accounts receivable is subtracted from net income.

Name: When preparing the operating section of the statement of cash flows using the indirect method,a decrease in accounts receivable is subtracted from net income.
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Quizplus · Accepted Answer

A decrease in accounts receivable is added to net income because it indicates that cash was collected, increasing cash flow.

When Preparing the Operating Section of the Statement of Cash