An increase in accounts receivable balance would be reported in a statement of cash flows using the indirect method (reconciliation method) as a(n) . addition to net income in arriving at net cash flow from operating activities. b. deduction from net income in arriving at net cash flow from operating activities. c. cash outflow from investing activities. d. cash outflow from financing activities.

An increase in accounts receivable balance would be reported in a statement of cash flows using the indirect method (reconciliation method) as a deduction from net income in arriving at net cash flow from operating activities.

Option B

Explanation:

Reconciliation is an accounting method that contrasts two sets of documents to ensure correct and clear figures. Credit reconciliation also ensures the consistency, consistency, and completeness of the records in the common chief.

In order to explain the discrepancy between two financial documents or accounts Checks, account reconciliation is especially useful. According to transfers and withdrawals, such variations may be appropriate. Nevertheless, unknown or suspicious inconsistencies may warn against theft or book cooking. The record can be reconciled regularly, weekly, or yearly between companies and individuals.

Organizations must amend their accounts in order to avoid errors on their balance sheets.

Each fee is published as a deposit and a credit in double-entry accounts.

Users can also use checking services to test their checks and credit card statements for their consistency.

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