Excerpts from Dibello Corporation\'s comparative balance sheet appear below: Whi

Question

Excerpts from Dibello Corporation's comparative balance sheet appear below: Which of the following is the correct treatment within the operating activities section of the statement of cash flows using the indirect method? A) The change in Accounts Receivable is added to net income; The change in Inventory is added to net income B) The change in Accounts Receivable is added to net income; The change in Inventory is subtracted from net income C) The change in Accounts Receivable is subtracted from net income; The change in Inventory is subtracted from net income D) The change in Accounts Receivable is subtracted from net income; The change in Inventory is added to net income

Explanation / Answer

The answer is............
C) The change in Accounts Receivable is subtracted from net income; The change in Inventory is subtracted from net income

The answer suggested above is assuming the change is "+ve"

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.