Under the indirect method of determining net cash provided by operating activities on the statement of cash flows,which of the following would be subtracted from net income?
A)A decrease in accounts receivable.
B)An increase in accrued liabilities.
C)A decrease in accounts payable.
D)An increase in dividend payments to stockholders.

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.

Under the Indirect Method of Determining Net Cash Provided by Operating