Match Each Item with the Correct Letter Below to Indicate

question 107

Short Answer

Match each item with the correct letter below to indicate how each revenue or expense account on the income statement is adjusted when using the direct method to determine net cash flow provided by operating activities.
Account Balance Change
_____ Increase in Accrued Expenses
_____ Decrease in Accounts Receivable
_____ Decrease in Unearned Income
_____ Increase in Prepaid Expenses
_____ Decrease in Accounts Payable
_____ Increase in Long-Term Notes Payable
_____ Decrease in Prepaid Insurance
_____ Increase in Inventory
_____ Increase in Interest Payable
_____ Increase in Accumulated Depreciation
Type of Adjustment
A - Add item to related revenue or expense account balance
S - Subtract item from related revenue or expense account balance
N - No adjustment necessary

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Definitions:

Expectancy Theory

A motivational theory suggesting that an individual's behavior is determined by their expected outcomes and the attractiveness of those outcomes.

Motivation

The internal and external factors that stimulate desire and energy in people to be continually interested and committed to a job, role or subject, or to make an effort to attain a goal.

Skills

Abilities or expertise developed through practice or training that enable a person to perform tasks effectively.

Personal Mission Statement

A concise summary of an individual's core values and purposes, guiding their behaviors and decisions.