When preparing the statement of cash flows using the indirect method,a decrease in current liabilities is added to the net income to arrive at net cash provided by operating activities.

Question

Quizplus · Accepted Answer

When preparing the statement of cash flows using the indirect method, a decrease in current liabilities is subtracted from the net income to arrive at net cash provided by operating activities, because it indicates that cash has been used to reduce the liabilities.

When Preparing the Statement of Cash Flows Using the Indirect