When the Direct Method Is Used to Determine the Cash

question 89

Multiple Choice

When the direct method is used to determine the cash flows from operating activities,which of the following adjustments must be made to interest expense to determine total interest payments?

• A)Add all changes in interest payable.
• B)Add decreases in interest payable and subtract increases in interest payable.
• C)Add increases in interest payable and subtract decreases in interest payable.
• D)Subtract all changes in interest payable.

---

Definitions:

Carbon-Carbon Double Bond

A chemical bond between two carbon atoms involving four bonding electrons instead of the usual two, giving the molecule added stability and reactivity.

Geometry

The study or description of the shape and relative arrangement of figures and bodies or their properties in space.

Alkene

Unsaturated hydrocarbons containing at least one carbon-carbon double bond, participating in various chemical reactions.

Poly(Tetrafluoroethylene)

A synthetic polymer known for its exceptional chemical resistance and used in non-stick coatings, commonly called Teflon.