ons 101 2 Question 19 Accounts payable increased during the year by $2,000. This amount should be subtracted from net income when reporting cash flows from operations under the indirect method. True. False. Question 20 Companies can choose to report cash flows from operating activities using either the direct or indirect method. False. True. Question 21 A company sold land at a gain of $2,000. This gain must be added back to net income when reporting cash flows from operating under the indirect method. 2 pts True. 2 pts 2 pts