During the 2017 fiscal year, a firm experienced an increase in accounts receivable. When determining its net cash flow from operating activities for that year, the firm would

A : make an upward adjustment for the amount of the increase when using the indirect method and make a downward adjustment to determine cash receipts from customers when using the direct method.

B : make a downward adjustment for the amount of the increase when using the indirect method and make a downward adjustment to determine cash receipts from customers when using the direct method.

C : make an upward adjustment for the amount of the increase when using the indirect method and make an upward adjustment to determine cash receipts from customers when using the direct method.

D : make a downward adjustment for the amount of the increase when using the indirect method and make an upward adjustment to determine cash receipts from customers when using the direct method.

Answer rating: 100% (QA)

C make an upward adjustment for the amount of the increase when usi... View the full answer