If a Company Is Using the Indirect Method to Prepare

Multiple Choice

If a company is using the indirect method to prepare the statement of cash flows, identify where an increase in the accounts receivable account should be reported:

A) A decrease in cash flows from investing activities
B) An increase in cash flows from operating activities
C) An increase in cash flows from investing activities
D) A decrease in cash flows from operating activities
E) An increase in cash flows from financing activities