When Preparing the Statement of Cash Flows by the Indirect

question 51

Multiple Choice

When preparing the statement of cash flows by the indirect method,if an accrued payable decreases,the difference is:

• A)added to net income.
• B)added to investments.
• C)deducted from net income.
• D)not considered in the statement of cash flows using the indirect method.

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Definitions:

Emerging Innovations

New developments or technologies that are on the verge of becoming widely known or used.

Creative Potential

The inherent capacity or possibility within a person to think creatively or come up with new and innovative ideas.

Sunk-cost Fallacy

The misconception of valuing ongoing investments based on previously spent resources rather than future benefits, often leading to irrational decision-making.

Development

The process of growth, progress, or evolution, often involving improvement in abilities, knowledge, or understanding.