asked 196k views
5 votes
When the indirect method is used, if accounts receivable increases during the accounting period, the change in accounts receivable is:?

asked
User Draeron
by
7.9k points

1 Answer

6 votes
The answer is that "the change in accounts receivable is subtracted from net income".
When the indirect method is used, the starting point is the net income and it is transformed to cash flows from operational actions by adding back losses and subtracting gains so that these quantities are removed.
answered
User Dunstan
by
8.0k points

No related questions found

Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.