In Determining Net Cash Flow from Operating Activities, a Decrease

question 75

Multiple Choice

In determining net cash flow from operating activities, a decrease in accounts payable during a period ________.

• A) does not require an adjustment under the indirect method
• B) does not require an adjustment under the direct method
• C) requires a subtraction adjustment to net income under the indirect method
• D) requires a subtraction adjustment to payments for merchandise under the direct method