IS THIS CORRECT?

Which of the following statements does not correctly describe an adjustment to net income when determining cash flows from operating activities using the indirect method?

Multiple Choice

An increase in accounts payable will be added to net income.

An increase in accrued liabilities will be subtracted from net income.

An increase in accounts receivable will be subtracted from net income.

A loss on the sale of a depreciable asset will be added to net income.