Which of the following would be added to net income in the operating activities section of a statement of cash flows prepared using the indirect method?
A)an increase in accounts receivable.
B)an increase in accounts payable.
C)an increase in common stock.
D)an increase in bonds payable.

Question

Quizplus · Accepted Answer

An increase in accounts payable is added to net income in the operating activities section because it represents expenses that have been incurred but not yet paid, indicating a source of cash.

Which of the Following Would Be Added to Net Income