Answer:
True
Explanation:
While preparing a cash flow statement under direct method, the decrease in accounts payable balance is added to cost of goods sold, as this leads to increase in cost of goods sold.
As, opening accounts payable will be part of cost of goods sold and closing will be deducted.
Thus, on a net effect when there is a decrease in value of accounts payable that decrease is added to cost of goods sold.
Therefore the statement given in question is true.
