Question: If using the indirect method of preparing the Statement of Cash Flows, which of the following statements is correct? An increase in a current asset
If using the indirect method of preparing the Statement of Cash Flows, which of the following statements is correct?
An increase in a current asset account should be subtracted from net income.
An increase in a current liability account should be subtracted from net income.
A decrease in a current liability account should be added to net income.
None of the answers listed is correct.
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