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Under the indirect method of preparing the statement of cash flows, how is an increase in accounts receivable handled?
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Under the indirect method of preparing the statement of cash flows, how is an increase in accounts receivable handled?

User Tushar Koul
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Answer: It is deducted from the net income.

Step-by-step explanation:

An increase in accounts receivable is a use of cash, therefore it must be accounted for when calculating the net income.

User Sirclesam
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