Operating Activities: Indirect Method Video Lessons

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Problem: When using the indirect method of preparing the "cash flows from operating activities" section of a statement of cash flows, a net increase between the beginning and ending balances of net accounts receivable will A) be added to net income. B) be deducted from net income. C) not be considered. D) be shown as deferred revenues.

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Problem Details

When using the indirect method of preparing the "cash flows from operating activities" section of a statement of cash flows, a net increase between the beginning and ending balances of net accounts receivable will

A) be added to net income.

B) be deducted from net income.

C) not be considered.

D) be shown as deferred revenues.

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