Asked by
Chante Moolman
on Nov 19, 2024Verified
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.
Verified Answer
PP
Learning Objectives
- Investigate the effect that transformations in current assets and liabilities have on the cash flow process.