Brandon,Inc.had a $1,000 increase in accounts payable during the year.Which of the following would appear on the statement of cash flows prepared using the indirect method?
A)Do not include the $1,000 in the statement of cash flows,but show it in an accompanying schedule of non-cash transactions
B)Add $1,000 to net income in order to arrive at net cash provided by operating activities
C)Deduct $1,000 from net income in order to arrive at net cash provided by operating activities
D)Deduct $1,000 to arrive at net cash flows from investing activities

Question

Quizplus · Accepted Answer

The Answer of Brandon,Inc.had a $1,000 increase in accounts payable during the year.Which of the following would appear on the statement of cash flows prepared using the indirect method?
A)Do not include the $1,000 in the statement of cash flows,but show it in an accompanying schedule of non-cash transactions
B)Add $1,000 to net income in order to arrive at net cash provided by operating activities
C)Deduct $1,000 from net income in order to arrive at net cash provided by operating activities
D)Deduct $1,000 to arrive at net cash flows from investing activities