Avatar Auto Parts Company Uses the Indirect Method to Prepare

question 43

Multiple Choice

Avatar Auto Parts Company uses the indirect method to prepare the statement of cash flows. Refer to the following section of the comparative balance sheet: How will the change in Accounts Payable be shown on the statement of cash flows?

• A) as an addition to Net Income
• B) as a deduction from Net Income
• C) as a deduction from investing cash flows
• D) as an addition to operating cash flows

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Definitions:

Zygomaticus Major

A muscle of facial expression that draws the angle of the mouth superiorly and posteriorly.

Orbicularis Oris

A circular muscle around the mouth that controls the movements of the mouth and lips.

Buccinator

A muscle of the cheek that aids in chewing and is involved in the compression of the cheeks against the teeth.

Masseter

A facial muscle that plays a major role in mastication (chewing), connecting the lower jaw to the cheekbone.