The Following Items Were Reported on the Balance Sheets and Income

question 162

Multiple Choice

The following items were reported on the balance sheets and income statement for Bezos Corp.: How would the change in accounts payable be reported in the operating activities section of the statement of cash flows under the indirect method?

• A) As an addition to operating expenses
• B) As a deduction from operating expenses
• C) As an addition to net income
• D) As a deduction from net income

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Definitions:

Express Warranty

An explicit promise by the seller regarding the quality, condition, or performance of the product being sold.

Bass Clarinet

A musical instrument that is a member of the woodwind family, larger than a regular clarinet and producing a deeper, richer sound.

Conform

To behave or perform in a manner that aligns with set norms, regulations, or legal requirements.

Express Warranty

A clear and definite promise made by a seller about the quality or functionality of a product.