When preparing the operating section of the statement of cash flows using the direct method, which of
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Question:
When preparing the operating section of the statement of cash flows using the direct method, which of the following statements is true?
- An increase in accounts payable is added to expenses.
- An increase in accounts receivable is added to sales.
- Depreciation expense is deducted from cash flows.
- Gains on sales of long-term assets are omitted from cash flows
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