Question
When using the indirect method of completing the cash flows from operating activities section, what is the proper treatment for a decrease in the inventory
When using the indirect method of completing the cash flows from operating activities section, what is the proper treatment for a decrease in the inventory account?
A. Deduct the increase from net income
B. Add the increase to net income
C. Add the increase to cash collections from customers
D. Deduct the increase to cash payment to suppliers
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Understanding Financial Accounting
Authors: Christopher D. Burnley
2nd Canadian Edition
1119406927, 978-1119406921
