A Company Uses the Indirect Method to Prepare the Statement

question 84

Multiple Choice

A company uses the indirect method to prepare the statement of cash flows. It presents the following amounts on its financial statements. *Relates solely to the acquisition of inventory
What will appear in the operating activities section related to accounts payable?

• A)The increase of $10,000 will be subtracted from net income.
• B)The increase of $10,000 will be added to net income.
• C)The increase of $10,000 will be subtracted from cost of goods sold.
• D)The increase of $10,000 will be added to cost of goods sold.

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Definitions:

Ultimate Cause

A term referring to the evolutionary explanations for why a biological trait or behavior occurs, focusing on survival and reproductive advantages.

Graylag Goose

A species of large grey goose, native to Europe and Asia, known for its significant role in studies of animal behavior, especially imprinting.

Sign Stimulus

A specific external sensory stimulus that triggers a fixed action pattern in an animal.

Innate Releasing Mechanism

A neurobiological process or mechanism that triggers an innate behavior in response to specific environmental stimuli.