In determining net cash flow from operating activities, a decrease in accounts payable during a period

In determining net cash flow from operating activities, a decrease in accounts payable during a period



a. means that income on an accrual basis is less than income on a cash basis.
b. requires an addition adjustment to net income under the indirect method.
c. requires an increase adjustment to cost of goods sold under the direct method.
d. requires a decrease adjustment to cost of goods sold under the direct method.







Answer: C


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Accounting Chapter 23

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