When one uses the indirect method, what should be added to net income in determi

ID: 2382280 • Letter: W

Question

When one uses the indirect method, what should be added to net income in determining net cash flow from operating activities? Answer a. Decrease in accounts receivable b. Decrease in accounts payable c. Both A and B d. Neither A or B I think that the answer is b.) Decrease in accounts payable When one uses the indirect method, what should be added to net income in determining net cash flow from operating activities? Decrease in accounts receivable Decrease in accounts payable Both A and B Neither A or B I think that the answer is b.) Decrease in accounts payable a. Decrease in accounts receivable b. Decrease in accounts payable c. Both A and B d. Neither A or B I think that the answer is b.) Decrease in accounts payable

Explanation / Answer

you are right:

b.) Decrease in accounts payable

source: http://connect.mcgraw-hill.com/sites/0077328787/student_view0/ebook/chapter4/chbody1/classifying_cash_flows.htm

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When one uses the indirect method, what should be added to net income in determi

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