Using the indirect method for preparing the statement of cash flows, which of the following would not be included as an adjustment to net income?

A decrease in Prepaid Insurance.

An increase in Accounts Payable.

An increase in Equipment.

An increase in Accounts Receivable.

None of the answer choices is correct.

Question $23$

$1$ pts

Which of the following is not an advantage of using the indirect method to prepare the statement of cash flows?

The indirect method provides a link between net income and cash flows from operating activities by reconciling the two amounts.

The indirect method typically takes less time to prepare than the direct method. $.$

Accounting systems are better suited to generate information needed for the indirect method.

The indirect method is more accurate than the direct method.

None of the answer choices is correct.