When Preparing a Statement of Cash Flows, an Increase in Accounts

question 5

Short Answer

When preparing a statement of cash flows, an increase in accounts payable during a period would require which of the following adjustments in determining cash flows from operating activities? $\text { Indirect Method\quad Direct Method }$
A) $\begin{array}{ll}\text { increase } &\quad\quad \text { decrease } \\\end{array}$
B) $\begin{array}{ll}\text {decrease } &\quad\quad \text { increase } \\\end{array}$
C) $\begin{array}{ll}\text { increase } &\quad\quad \text { increase } \\\end{array}$
D) $\begin{array}{ll}\text {decrease } &\quad\quad \text { decrease }\end{array}$

• A)\(\begin{array}{ll}
• \text { increase } &\quad\quad \text { decrease } \\\end{array}\)
• B)\(\begin{array}{ll}\text {decrease } &\quad\quad \text { increase } \\\end{array}\)
• C)\(\begin{array}{ll}\text { increase } &\quad\quad \text { increase } \\\end{array}\)
• D)\(\begin{array}{ll}\text {decrease } &\quad\quad \text { decrease }
• \end{array}\)

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Definitions:

Free Association

A psychoanalytic technique in which a patient expresses thoughts freely and spontaneously, revealing unconscious thoughts or feelings.

Psychoanalytic Technique

consists of methods used in psychoanalysis, like free association and dream analysis, to explore unconscious motivations and conflicts.

Unconditional Positive Regard

An attitude of acceptance and support, regardless of what a person says or does, especially in a therapeutic context.

Client-centered

A therapeutic approach focusing on the client's perspective and innate self-healing process, emphasizing empathy and unconditional positive regard.