Under the indirect method to prepare the statement of cash flows,a decrease in a current asset other than cash indicates a deduction from net income when calculating Net cash provided by operating activities.

Question

Quizplus · Accepted Answer

A decrease in a current asset other than cash indicates an addition to net income when calculating net cash provided by operating activities, as it suggests that cash has increased due to the reduction of that current asset.

Under the Indirect Method to Prepare the Statement of Cash