Question

in preparing a statement of cash flows under the indirect method, an increase in accounts payable would be reported or included as a(n):

Answer 1

In preparing a statement of cash flows under the indirect method, an increase in accounts payable would be reported or included as a(n):

source of cash.

Step-by-step explanation:

Accounts payable are liabilities owed to suppliers for goods or services. They are listed on the balance sheet under current liabilities and on the cash flow statement under operating activities. When preparing the statement of cash flows, an increase in accounts payable is regarded as a source of cash while a decrease is regarded as a use of cash.