When Preparing the Operating Activities Section of the Statement of Cash

question 66

True/False

When preparing the operating activities section of the statement of cash flows using the indirect method, a decrease in accounts receivable is subtracted from income.

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Definitions:

Plan

A detailed proposal for doing or achieving something.

Staff

The group of individuals who work for an organization, contributing their skills and labor to achieve the objectives of the organization.

Practice

The act of repeatedly performing or exercising an activity or skill so as to acquire or maintain proficiency in it.

Internal Auditors

Professionals who conduct audits within an organization to assess the effectiveness, efficiency, and compliance of operational processes and controls.