While Preparing the Statement of Cash Flows Using the Indirect

question 4

True/False

While preparing the statement of cash flows using the indirect method, a decrease in current liabilities is added to the net income to arrive at net cash flow from operating activities.

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Definitions:

Goods and Services

Physical items (goods) and intangible benefits (services) that satisfy human wants or needs.

Assets Abroad

Refers to any form of wealth or resources owned by individuals or entities in foreign countries.

Selling

The act of offering goods or services in exchange for money or other goods and services.

Trade Surplus

A situation where the value of a country's exports exceeds the value of its imports over a certain period of time.