On a Statement of Cash Flows Prepared Using the Indirect

question 61

Multiple Choice

On a statement of cash flows prepared using the indirect method, an increase in Accounts Receivable during the period is:

• A)added to net income to determine net cash provided by investing activities.
• B)deducted from net income to determine net cash provided by investing activities.
• C)deducted from net income to determine net cash provided by operating activities.
• D)added to net income to determine net cash provided by operating activities.

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Definitions:

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