In preparing the statement of cash flows by the indirect method, an increase in Accounts Payable would be subtracted from net income.

Name: In preparing the statement of cash flows by the indirect method, an increase in Accounts Payable would be subtracted from net income.
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An increase in Accounts Payable is added to net income in the operating activities section because it represents expenses that have not yet been paid in cash, thus increasing cash flow.

In Preparing the Statement of Cash Flows by the Indirect