When the Indirect Method Is Used to Determine Net Cash

question 130

Multiple Choice

When the indirect method is used to determine net cash provided by (used in) operating activities,subtracting an increase in Accounts Receivable from net income eliminates the effect of recording revenue that:

• A)increased net income,but did not impact cash.
• B)decreased net income,but did not impact cash.
• C)increased net income and increased cash flow.
• D)decreased net income and decreased cash flow.

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