Which of the following would be shown as a deduction from net income when calculating net cash flow from operating activities using the indirect method?
A)Decrease in Accounts Payable for inventory purchases
B)Loss on the sale of equipment
C)Decrease in Accounts Receivable
D)Increase in salaries payable

Question

Quizplus · Accepted Answer

A decrease in accounts payable indicates that cash was used to pay off liabilities, which reduces cash flow from operating activities.

Which of the Following Would Be Shown as a Deduction