Question

When preparing a statement of cash flows, a decrease in accounts receivable during a period would cause which one of the following adjustments in determining cash flow from operating activities? Direct Method Indirect Method Decrease Decrease Increase Increase Increase Decrease

Answer 1

Increase Increase

Step-by-step explanation:

financial accounting, statement of cash flow can be regarded as a financial statement that gives the summary of values of amount cash as well as cash equivalent that enters or leave a firm. It gives the measurement of the well management of cash position of a company. It should be noted that When preparing a statement of cash flows, a decrease in accounts receivable during a period the adjustments in determining cash flow from operating activities is that Direct Method increases, Indirect Method increases.