If a Change in Accounts Payable Was Added Back to Net

question 30

True/False

If a change in accounts payable was added back to net income on the statement of cash flows prepared using the indirect method,then the amount owed to suppliers during the period had decreased.

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Definitions:

Prosperity Phase

A stage of the business cycle in which economic activity is growing, leading to higher levels of employment, income, and production.

Recession Phase

is a period of temporary economic decline during which trade and industrial activities are reduced, typically identified by a fall in GDP in two successive quarters.

Recovery Phase

A stage in the economic cycle where activity begins to increase again after a period of recession or depression, marked by rises in employment, consumer spending, and production.

Business Cycle

The cyclic phenomenon of economic expansion and contraction experienced by an economy over time.