Financial Accounting, 8th Edition
Financial Accounting, 8th Edition
8th Edition
ISBN: 9780078025556
Author: Robert Libby, Patricia Libby, Daniel Short
Publisher: McGraw-Hill Education
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Chapter 12, Problem 2ME

Determining the Effects of Account Changes on Cash Flow from Operating Activities

(Indirect Method)

Indicate whether each item would be added (+) or subtracted (−) in the computation of cash flow from operating activities using the indirect method.

_______ 1. Accrued expenses (increase).

_______ 2. Inventories (increase).

_______ 3. Accounts receivable (decrease).

_______ 4. Accounts payable (decrease).

_______ 5. Depreciation, depletion, and amortization.

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Financial Accounting, 8th Edition

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