When preparing a statement of cash flows using the indirect method,an increase in wages payable is subtracted from net income.

Name: When preparing a statement of cash flows using the indirect method,an increase in wages payable is subtracted from net income.
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Quizplus · Accepted Answer

An increase in wages payable would be added to net income in the operating activities section because it represents an expense that has been incurred but not yet paid in cash, thus not reducing the actual cash during the period.

When Preparing a Statement of Cash Flows Using the Indirect