During Year 7, Frank Company Had a Net Increase in Accounts

Multiple Choice

During Year 7, Frank Company had a net increase in accounts receivable of $10,000.The T-account work sheet for preparing the statement of cash flows

A) adds the increase in accounts receivable in deriving cash flow from operating activities.
B) subtracts the increase in accounts receivable in deriving cash flow from operations.
C) adds the increase in accounts receivable in deriving cash flow from financing activities.
D) subtracts the increase in accounts receivable in deriving cash flow from financing activities.
E) subtracts the increase in accounts receivable in deriving cash flow from investing activities.