All of the following are deducted from net income when preparing the statement of cash flows under the indirect method except:
A)an increase in Accounts Payable.
B)a decrease in Accrued Liabilities.
C)an increase in Accounts Receivable.
D)an increase in Inventory.

Question

Quizplus · Accepted Answer

An increase in Accounts Payable is added to net income in the operating activities section of the cash flow statement under the indirect method, as it represents a source of cash.

All of the Following Are Deducted from Net Income When