Under the Indirect Method,a Decrease in Accounts Receivable Is Added

question 1

True/False

Under the indirect method,a decrease in accounts receivable is added to net income to arrive at net cash flows from operating activities.

---

Definitions:

Limited Liability Partnership

A business entity where partners have limited liabilities, protecting their personal assets from business debts.

Conduct Business

The act of engaging in activities or operations that relate to the buying, selling, or providing of goods or services.

Sole Proprietor

is a business owned and operated by a single individual, where there is no legal distinction between the owner and the business entity.

Corporation

A legal entity that is separate from its owners, providing limited liability, and is able to own property, incur debt, sue and be sued.