Question

According to the indirect method of preparing a cash flow statement, under which category does inventory fall? Under the indirect method of preparing a cash flow statement, a decrease in a , such as inventory, is added to the net income

Answer 1

" non-cash current asset "

Step-by-step explanation:

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Answer 2

Cash flow from Operating Activities

Step-by-step explanation:

Inventories are part of the ordinary course of business and thus any inventory changes will be categorized under Cash flow from Operating Activities.

An increase in the inventory balance will be deducted from Net Income whilst a decrease is added to the net income.