Salaries Payable Increased from 2009 to 2010

question 72

Multiple Choice

Salaries payable increased from 2009 to 2010.Using the indirect method (statement of cash flows) ,the increase should be:

• A)be subtracted from net income
• B)be added to net income
• C)have no adjustment made to net income
• D)be added to the investing section of the statement of cash flows

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Definitions:

Merchandise Returns

Goods that are returned to the seller from the buyer, generally due to defects, dissatisfaction, or the wrong items being delivered.

Sales

The total amount of goods or services sold by a company during a specific period, often used as a measure of business performance.

Cash Sales

Transactions in which goods or services are paid for in full using cash at the time of sale.