Economics · Cash Flow Statement
Under the indirect method of preparing a cash flow statement, an increase in accounts receivable during the year will:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Be added to net profit in operating activities
- 2Be deducted from net profit in operating activities✓
- 3Appear under investing activities
- 4Not affect cash flow from operating activities
Correct answer
Be deducted from net profit in operating activities
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