Which of the following statements does not correctly describe an adjustment to net income in determining cash flows from operating activities when using the indirect method?
A. An increase in accounts payable will be added to net income.
B. An increase in inventory will be added to net income.
C. Amortization of bond premium will be deducted from net income.
D. A decrease in accounts receivable will be added to net income.
Answer: B
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Answer the following statement true (T) or false (F)
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Answer the following statement true (T) or false (F)
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