Asked by

Chante Moolman
on Nov 19, 2024

verifed

Verified

Under the indirect method of determining the net cash provided by operating activities on the statement of cash flows, an increase in accounts receivable would be subtracted from net income.

Indirect Method

A technique used in cash flow statements to adjust net income for changes in non-cash items and working capital to arrive at cash provided by operating activities.

Net Cash Provided

The amount of cash generated by a company's business activities after all operating costs and expenses have been paid.

Accounts Receivable

Unsettled payments from customers to a company for goods delivered or services rendered.

  • Investigate the effect that transformations in current assets and liabilities have on the cash flow process.
verifed

Verified Answer

PP
Patrick PrangeNov 19, 2024
Final Answer:
Get Full Answer