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

question 47

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.We would subtract a decrease in accounts payable from net income to arrive at net cash flows from operating activities under the indirect method.

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Definitions:

Federal Insurance Company

An insurance provider that is regulated at the federal level, offering various types of insurance policies to protect against specific risks.

Timely

Refers to something done or occurring at a favorable or useful time; prompt.

Assent

Agreement or approval, typically given formally or officially, to a proposition or contract terms.

Offeree

The person or party to whom an offer is made, especially in contract law.