A Company Uses the Indirect Method to Prepare the Statement

question 3

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 salary payable?

• A)The increase of $2,000 will be added to cost of goods sold.
• B)The increase of $2,000 will be added to net income.
• C)The increase of $2,000 will be subtracted from cost of goods sold.
• D)The increase of $2,000 will be subtracted from net income

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Definitions:

Organization Life

Refers to the cyclical stages through which an organization passes, including inception, growth, maturity, and decline or renewal.

Organizational Culture

The set of shared values, beliefs, and practices that characterizes an organization and influences its members' behavior.

Communication Activities

Actions or processes involved in transmitting information, ideas, or feelings between individuals or groups.

Jargon

Specialized language used by a particular group or profession, often difficult for outsiders to understand.