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.

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Definitions:

Spiracles

Openings on the surface of some animals, such as insects, spiders, and some fish, which lead to respiratory systems, allowing air to enter the body.

Annelids

A phylum of invertebrate animals characterized by their segmented bodies and include earthworms, leeches, and marine worms.

Diving Marine Mammals

Marine animals, such as whales, seals, and dolphins, adapted to diving deep under water to feed, communicate, or avoid predators.

Adaptations

The method through which a species adapts to its surroundings; this occurs as natural selection works on variation that can be passed down through generations.