An Increase in Accounts Receivable Does Not Require Adjusting Net

question 9

True/False

An increase in accounts receivable does not require adjusting net income, if preparing the statement of cash flows using the indirect method.

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Definitions:

Discount on Bonds Payable

The difference when a bond is issued for less than its face value or nominal value.

Bond Interest Expense

The cost incurred by an issuer of bonds due to the interest payments made to bondholders.

Tax Deductible

Expenses that can be subtracted from gross income to reduce taxable income.

Contract Interest Rate

The pre-determined rate at which interest is calculated on a loan or financial agreement.