On an Indirect Method Statement of Cash Flows,an Increase in Accounts

question 75

Multiple Choice

On an indirect method statement of cash flows,an increase in accounts payable would be:

• A) reflected in the investing activities section
• B) netted against any decreases in accounts receivable
• C) added to net income
• D) deducted from net income

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Definitions:

Arbitrage Strategy

An investment strategy aiming to profit from price differences of the same asset across different markets without market risk.

SEC Regulation

A set of rules and guidelines issued by the U.S. Securities and Exchange Commission to protect investors and maintain fair and orderly functioning of the securities markets.

Transparency

The degree to which a company's actions are observable, understandable, and disclosed to the outside world, especially to investors.

Advertise

To announce or promote a product, service, or event publicly to encourage commercial interest.