Question: If operating cash flows are calculated using the indirect method, which of the choices below correctly states the direction of adjustments to convert net income

If operating cash flows are calculated using the indirect method, which of the choices below correctly states the direction of adjustments to convert net income into net cash provided by or used in operations?

Account Deduct from Net Income Add to Net Income

A) Inventory Decrease Increase

B) Accounts Payable Decrease Increase

C) Accounts Receivable Decrease Increase

D) Accrued Liabilities Increase Decrease

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