Several Items from the Financial Statements of Fireside Tires Are

question 10

Multiple Choice

Several items from the financial statements of Fireside Tires are listed. Use the following choices to identify the type of account for each item listed. (Choices may be used more than once.)
-Long-term notes payable

• A)Assets
• B)Liabilities
• C)Revenues
• D)Expenses
• E)Stockholders' Equity

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Definitions:

Indirect Method

A method used in cash flow statement preparation that adjusts net income for items that affected reported net income but didn't affect cash.

Operating Activities

Activities directly related to the production, sale, and delivery of a company's goods or services, reflecting its core business operations.

Indirect Method

A way of calculating cash flows from operating activities in the cash flow statement by adjusting net income for changes in non-cash accounts.

Net Decrease

A reduction in the quantity or value of something, calculated by subtracting the final figure from the initial figure.