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In preparing the cash flows from operating activities section of the statement of cash flows by...

In preparing the cash flows from operating activities section of the statement of cash flows by the indirect method the net decrease in inventories from the beginning to the end of the period is added to net income for the period

true or false

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Answer #1

The above said statement is TRUE

Explanation:

While preparing cash flow form operating activities Decrease in current assets is added back to net income and Increase in current assets is subtracted from Net income and the other side Increase in current Liabilities is added back to net income and Decrease in current Liabilities is subtracted

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