Under the Indirect Method, a Decrease in Accounts Payable Must

question 92

True/False

Under the indirect method, a decrease in Accounts Payable must be subtracted from net income when computing cash from operating activities.

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Definitions:

Journal Entry

Definition: A record in accounting that represents a transaction and its effect on various accounts in the double-entry bookkeeping system.

Supplies

Raw materials or tools necessary for the manufacturing or provision of services.

Services Rendered

Refers to the performance of services or completion of tasks by a company or individual in exchange for payment.

Journal Entry

A record in accounting that represents a transaction and its effect on various accounts, consisting of debits and credits.