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Rick Corporation's Accounts Receivable Decreased by $25,000 During the Year

Question 78

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Rick Corporation's Accounts Receivable decreased by $25,000 during the year.What is the adjustment to the cash flow statement when it is prepared by the indirect method?


A) Subtract the decrease from the net income in operating activities.
B) Add the decrease to the net income in operating activities.
C) Add the decrease in the investing activities section.
D) Subtract the decrease in the financing activities.

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