How Should the Changes in Current Accounts Be Treated in Computing

Multiple Choice

How should the changes in current accounts be treated in computing cash flows from operating activities using the indirect method?

A) Increases in all current accounts must be added to net income
B) Increases in all current accounts must be subtracted from net income
C) Increases in all current assets must be added to net income and increases in current liabilities subtracted
D) Increases in all current assets must be subtracted from net income and increases in current liabilities added