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telo118 [61]
3 years ago
12

Under the indirect method of preparing the statement of cash flows, how is an increase in accounts receivable handled?

Business
1 answer:
lawyer [7]3 years ago
5 0

Answer: It is deducted from the net income.

Explanation:

An increase in accounts receivable is a use of cash, therefore it must be accounted for when calculating the net income.

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