Brandon, Inc

question 155

Multiple Choice

Brandon, Inc.had a $1,000 increase in accounts payable during the year.Which of the following will appear on the statement of cash flows prepared using the indirect method?

• A)Do not include the $1,000 in the statement of cash flows but show it in an accompanying schedule of non-cash transactions.
• B)Add $1,000 to net income in order to arrive at net cash provided by operating activities.
• C)Deduct $1,000 from net income in order to arrive at net cash provided by operating activities.
• D)Deduct $1,000 to arrive at net cash flows from investing activities.

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Definitions:

Entrepreneurial Talent

The unique set of skills, intuition, and insights that an entrepreneur possesses, which contributes to the successful creation and growth of businesses.

Accounting Profit

The profit a company has after deducting all its costs from its total revenues, according to standard accounting practices.

Production Costs

The total expense of manufacturing or producing goods, including materials, labor, and overhead expenses.

Marginal Product

The additional output that results from using one more unit of a particular input, holding other inputs constant.