If a Company Uses the Indirect Method to Prepare the Statement

question 38

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 suppliers be presented on the statement?

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

Interpret economic conditions and policy outcomes using the Phillips curve model.

Distinguish between short-run and long-run impacts of economic policies on unemployment and inflation.

Analyze the implications of changes in aggregate demand and aggregate supply on the economy.

Evaluate the role of expectations in shaping economic outcomes in the context of the Phillips curve.

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Definitions:

Basidia

Specialized spore-producing cells found in the reproductive structures of Basidiomycete fungi.

Asci

Asci are sac-like structures found in ascomycete fungi where the spores, called ascospores, are produced during sexual reproduction.

Mycorrhizae

Mutualistic associations of fungi and plant roots that aid in the plant’s absorption of essential minerals from the soil. Hyphae of ectomycorrhizal fungi coat plant roots; those of endomycorrhizal fungi penetrate plant cell walls (see arbuscules).

Ascospores

Sexual spores produced within the ascus of ascomycete fungi during the sexual phase of their life cycle.