When Preparing the Operating Activities Section of the Statement of Cash

question 15

True/False

When preparing the operating activities section of the statement of cash flows using the indirect method,an increase in income taxes payable is added to net income.To convert net income to cash flows from operating activities,an increase in income taxes payable means that income tax expense on the income statement is greater than the amount of cash paid for income taxes;therefore,the increase should be added to net income.

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Definitions:

Social-Emotional Demands

The requirements placed on employees to manage emotions and engage in complex interpersonal interactions as part of their job.

Task Demands

Task demands are the aspects of a job that require physical and mental effort, encompassing the responsibilities, workload, and challenges associated with a particular role.

Technical Demands

The specific skills, knowledge, and abilities required to perform the tasks associated with a particular job or activity.

Tangible Factor

A quantifiable element that can be physically touched or measured, influencing outcomes or decisions.