Question
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? Answer
a. an increase in accounts receivable. b. an increase in accounts payable. c. an increase in common stock. d. an increase in bonds payable. 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? an increase in accounts receivable. an increase in accounts payable. an increase in common stock. an increase in bonds payable. a. an increase in accounts receivable. b. an increase in accounts payable. c. an increase in common stock. d. an increase in bonds payable.
Explanation / Answer
b. an increase in accounts payable.