When operating cash flows are calculated using the indirect method, if accounts receivable balance decreased, then the change is ______ during the period.

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Sumthin98711 Sumthin98711

27-04-2022
Business

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When operating cash flows are calculated using the indirect method, if accounts receivable balance decreased, then the change is ______ during the period.

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topeadeniran2 topeadeniran2 · Answer 1 · 2022-04-29T10:17:11+02:00

When operating cash flows are calculated using the indirect method, the change is added to net income.

What is operating cash flow?

It should be noted that the operating cash flow is the money that's required in a business to run expenses.

When operating cash flows are calculated using the indirect method, if accounts receivable balance decreased, then the change is added to net income because more cash was collected that revenue generated.

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