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In Determining Net Cash Flow from Operating Activities, a Decrease

Question 75

Multiple Choice

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


A) does not require an adjustment under the indirect method
B) does not require an adjustment under the direct method
C) requires a subtraction adjustment to net income under the indirect method
D) requires a subtraction adjustment to payments for merchandise under the direct method

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