Question

When preparing the operating activities section of the statement of cash flows using the indirect method, a decrease in accounts receivable is subtracted from net income. Group startsTrue or False

Answer 1

Answer:

True

Explanation:

statement of cash flows can be regarded as financial statement which gives analysis of how cash as well as cash equivalent is affected by any changes in balance sheet accounts.

The indirect method of statement of cash flows begins with loss or the net income as well as the substraction of values from non cash revenue which result in case flow as a result of operating activities.