An Increase in Accounts Payable Is Added to Net Income

question 37

True/False

An increase in accounts payable is added to net income to determine cash provided/(used) by operating activities when using the indirect method.

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Definitions:

Fluid Ounces

A unit of volume used mostly to measure liquids, differing slightly between the US and the UK systems.

Pharmacy

A place where drugs and medicines are prepared and dispensed by a pharmacist, also the science and practice of preparing and dispensing medical drugs.

Milliliters (mL)

A metric unit of volume equal to one-thousandth of a liter, commonly used to measure liquids.

Teaspoon (tsp)

A unit of measure typically used in cooking, equivalent to approximately 5 milliliters.