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

question 141

True/False

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

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Definitions:

Upside-Down Pyramid

A view of organizations that shows customers at the top being served by workers who are supported by managers.

Customers

Individuals or organizations that purchase goods or services from a business or seller.

Top Managers

The highest echelon of leaders within an organization, responsible for strategic decision-making and overall direction of the company.

Executive Team

A group of high-ranking officers within a company, responsible for strategic decision-making and management.