If a Company Uses the Indirect Method to Prepare the Statement

question 22

Multiple Choice

If a company uses the indirect method to prepare the statement of cash flows, how will the adjustment to reflect the amount of cash payments to employees be presented on the statement?

• A)The adjustment will be for the increase or decrease in accounts payable for the period and will adjust net income in the operating activities section.
• B)The adjustment will be for the increase or decrease in accounts receivable for the period and will adjust net income in the operating activities section.
• C)The adjustment will be for the increase or decrease in inventory for the period and will adjust net income in the operating activities section.
• D)The adjustment will be for the increase or decrease in wages payable for the period and will adjust net income in the operating activities section.

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Definitions:

Safety Measures

Protocols and actions taken to prevent accidents, injuries, and harm in various environments, ensuring the well-being of individuals and communities.

Single-Room Occupancy

A form of housing in which one tenant occupies a single room and shared amenities such as bathrooms and kitchens are common.

Filthy Bathroom

An unclean and possibly contaminated bathroom that requires cleaning for health reasons.

Home Healthcare

Medical and non-medical services provided in a patient's home to promote, maintain, or restore health or minimize the effects of illness and disability.