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

Question

LoAnnie Rodriguez · Accepted Answer

Final Answer : False, Explanation :  When preparing the operating activities section of the statement of cash flows using the indirect method, decreases in current assets are actually added to net income, because they indicate that cash has increased through operations.

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

Definitions

Learning Objectives

Learning Objectives

Related questions