Financial Accounting Plus MyLab Accounting with Pearson eText -- Access Card Package (12th Edition)

12th Edition

ISBN: 9780134833132

Author: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.

Publisher: PEARSON

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Textbook Question

Chapter 11, Problem 11QC

If the indirect method is used to calculate net cash provided by operating activities, a decrease in accounts receivable is

a. added to net income.

b. subtracted from net income.

c. ignored since it does not affect net income.

d. ignored since it does not affect expenses.

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Chapter 11, Problem 10QC

Chapter 11, Problem 12QC

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Chapter 11 Solutions

Financial Accounting Plus MyLab Accounting with Pearson eText -- Access Card Package (12th Edition)

Ch. 11 - Quick Check (Answers are given here) The statement...Ch. 11 - Prob. 2QC Ch. 11 - Prob. 3QC Ch. 11 - Which of the three types of activities reported on...Ch. 11 - Prob. 5QC Ch. 11 - On the statement of cash flows, which of the...Ch. 11 - On the statement of cash flows, which of the...Ch. 11 - Prob. 8QC Ch. 11 - Prob. 9QC Ch. 11 - Which of the following transactions does not...

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If the indirect method is used to calculate net cash provided by operating activities, a decrease in accounts receivable is a. added to net income. b. subtracted from net income. c. ignored since it does not affect net income. d. ignored since it does not affect expenses.

Solution Summary: The author explains whether a decrease in accounts receivable is added or subtracted under indirect method of operating activities.

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Chapter 11 Solutions