A Company That Had a $500 Decrease in Accounts Receivable

Multiple Choice

A company that had a $500 decrease in accounts receivable during a period would do which of the following on its statement of cash flows prepared using the indirect method?

A) Add the $500 to net income in order to arrive at net cash provided by operating activities.
B) Subtract the $500 from net income in order to arrive at net cash provided by operating activities.
C) Add the $500 to the net cash provided by investing activities.
D) Add the $500 to the net cash provided by financing activities.