During Year 6, Delta Company Had a Net $4,000 Increase

question 128

Multiple Choice

During Year 6, Delta Company had a net $4,000 increase in customer advances.The T-account work sheet for preparing the statement of cash flows

• A)subtracts this excess from net income in deriving cash flow from operating activities.
• B)adds this excess to net income in deriving cash flow from financing activities.
• C)adds this excess to net income in deriving cash flow from operating activities.
• D)subtracts this excess from net income in deriving cash flow from financing activities.
• E)subtracts this excess from retained earnings in deriving cash flow from operating activities.

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