23. Which of the following statements is correct? a) In the statement of cash fl

Question

23. Which of the following statements is correct?
a) In the statement of cash flows, a decrease in accounts receivable is subtracted from net income in the operating activities section.
b) Dividends do not show up in the statement of cash flows because dividends are considered to be a financing activity, not an operating activity.
c) In the statement of cash flows, a decrease in accounts payable is subtracted from net income in the operating activities section.
d) In the statement of cash flows, depreciation is subtracted from net income in the operating activities section.
e) In the statement of cash flows, a decrease in inventories is subtracted from net income in the operating activities section.

Explanation / Answer

23. Which of the following statements is correct? c) In the statement of cash flows, a decrease in accounts payable is subtracted from net income in the operating activities section.

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