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Question

Increase in creditors is in the cash flow statement.

A
added
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B
deducted
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C
multiplied
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D
not treated
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Solution

The correct option is A added
If the balance of a liability increases, cash flow from operations will increase, if the balance of a liability decreases, cash flow from operations will decrease, current liabilities would include short-term debt and accounts payable. So, the increase in creditors is added in the cash flow statement.

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