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.

Distinguish between incremental sales and operating expenses in projecting future cash flows.

Appreciate the role of after-tax discount rates in the valuation of future cash flows.

Recognize the importance of working capital management in the context of project completion and its release for use elsewhere.

Understand the objectives and components of effective compensation systems.

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Definitions:

Conditional

A compound proposition containing two component propositions (the antecedent and the consequent) and asserting that the truth of one component would be sufficient for the truth of the other.

Biconditional

A logical statement where both components imply each other; true only when both parts are either true or false.

Truth Values

The values indicating the relation of a proposition to truth, commonly classified as true or false.

Main Connective

In logic, the operator within a proposition that determines the proposition's overall truth value; it links the main components of the proposition.