Which of the Following Statements Is CORRECT

question 134

Multiple Choice

Which of the following statements is CORRECT?

• A) In the statement of cash flows,a decrease in accounts receivable is subtracted from net income in the operating activities section.
• B) Dividends do not show up in the statement of cash flows because dividends are considered to be a financing activity,not an operating activity.
• C) In the statement of cash flows,a decrease in accounts payable is subtracted from net income in the operating activities section.
• D) In the statement of cash flows,depreciation is subtracted from net income in the operating activities section.
• E) In the statement of cash flows,a decrease in inventories is subtracted from net income in the operating activities section.

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