When preparing the operating activities section of the statement of cash flows using the indirect method,decreases in current assets are added back to net income.

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Emili Rivas · Accepted Answer

Final Answer : True, Explanation :  This is correct. The indirect method of preparing the operating activities section of the statement of cash flows requires that decreases in current assets be added back to net income, while increases in current assets are subtracted.

When preparing the operating activities section of the statement of cash flows using the indirect method,decreases in current assets are added back to net income.

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