Indicate whether each item would be added (+) or subtracted (-) in the computation of cash flow
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Indicate whether each item would be added (+) or subtracted (-) in the computation of cash flow from operating activities using the indirect method.
_______ 1. Depreciation.
_______ 2. Inventories decrease.
_______ 3. Accounts payable decrease.
_______ 4. Accounts receivable increase.
_______ 5. Accrued liabilities increase.
Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
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Related Book For
Managerial Accounting
ISBN: 978-0078025518
2nd edition
Authors: Stacey Whitecotton, Robert Libby, Fred Phillips
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