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Increase in current liabilities like accounts payable, accrued liabilities etc. are
Increase in current liabilities like accounts payable, accrued liabilities etc. are
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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. Increase in current liabilities like accounts payable, accrued liabilities etc. are added under the indirect method.
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. Increase in current liabilities like accounts payable, accrued liabilities etc. are added under the indirect method.
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