A Company Uses the Indirect Method to Prepare the Statement

question 34

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 decrease of $3,000 will be added to net income.
• B)The decrease of $3,000 will be added to cost of goods sold.
• C)The decrease of $3,000 will be subtracted from cost of goods sold.
• D)The decrease of $3,000 will be subtracted from net income

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Definitions:

Self-Managing Teams

Teams that operate without the direct supervision of managers and instead rely on the collective skills and insights of the team members to manage their tasks and processes.

Networks

The interconnected systems or groups of people that exchange information, resources, and support, often enhancing social, professional, or technological connectivity.

Ambidextrous Organization

An organization that is capable of simultaneously exploiting its current capabilities while exploring new opportunities, thereby balancing efficiency and innovation.

Strategic Control

A management process used to track the strategy as it is being implemented, detecting any problem areas or potential improvements.