An overstatement of the beginning inventory results in an overstatement of net income. O no effect on the period's net income. an understatement of net income. a need to adjust purchases. In calculating cash flows provided (used) by operating activities using the indirect method, a loss on the sale of equipment is not reported on a statement of cash flows. deducted from net income. added to net income. ignored because it does not affect cash. In calculating cash flows provided (used) by operating activities using the indirect method, a loss on the sale of equipment will appear as an addition to net income. subtraction from net income. addition to cash flow from investing activities. subtraction from cash flow from investing activities. In calculating cash flows provided (used) by operating activities using the indirect method, a gain on the sale of equipment is added to net income. ignored because it does not affect cash. deducted from net income. not reported on a statement of cash flows. If accounts payable have increased during a period, O revenues on an accrual basis are less than revenues on a cash basis. expenses on an accrual basis are greater than expenses on a cash basis. expenses on an accrual basis are the same as expenses on a cash basis. expenses on an accrual basis are less than expenses on a cash basis