When the Indirect Method Is Used,if Accounts Payable Increases During

question 104

Multiple Choice

When the indirect method is used,if accounts payable increases during the accounting period,the change in accounts payable is:

• A)added to the change in the cash account.
• B)added to net income.
• C)subtracted from net income.
• D)subtracted from the change in the cash account.

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Definitions:

Market

A venue or system where buyers and sellers interact to trade goods, services, or financial instruments, establishing prices and quantities through supply and demand.

Economically Successful

Refers to the state or condition where an entity, such as a person, company, or nation, achieves desired financial outcomes and sustainable growth over time.

Entrepreneur

A person who introduces new products or improved technologies and decides which projects to undertake. A successful entrepreneur’s actions will increase the value of resources and expand the size of the economic pie.

Financial Capital

Economic resources measured in terms of money used by entrepreneurs and businesses to buy what they need to make their products or to provide their services.