If the indirect method is used, which of the following is a proper adjustment to net income to arrive at net cash flows from operating activities? Select one: a. deducting a decrease in Prepaid Expenses. b. deducting an increase in Salaries Payable. c. adding an increase in Accounts Receivable. d. adding a decrease in Inventory.
If the indirect method is used, which of the following is a proper adjustment to net income to arrive at net cash flows from operating activities? Select one: a. deducting a decrease in Prepaid Expenses. b. deducting an increase in Salaries Payable. c. adding an increase in Accounts Receivable. d. adding a decrease in Inventory.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:If the indirect method is used, which of the following is a proper adjustment to net income to arrive
at net cash flows from operating activities?
Select one:
а.
deducting a decrease in Prepaid Expenses.
b.
deducting an increase in Salaries Payable.
C.
adding an increase in Accounts Receivable.
d.
adding a decrease in Inventory.
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