A Company Uses the Direct Method to Prepare the Statement

question 18

Multiple Choice

A company uses the direct method to prepare the statement of cash flows. How will the amount of cash payments to suppliers be computed?

• A)The amount of cash payments to suppliers is computed as interest expense minus the decrease in accounts payable.
• B)The amount of cash payments to suppliers is computed as interest expense minus the decrease in merchandise inventory.
• C)The amount of cash payments to suppliers is computed as purchases minus the increase in accounts payable.
• D)The amount of cash payments to suppliers is computed as interest expense minus the increase in merchandise inventory.

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Definitions:

Ideal Self

The self one would like to be.

Concrete

A composite material used for construction, made by mixing cement, aggregate (sand, gravel, or crushed stone), water, and, often, small amounts of chemicals to control setting.

Observable Behaviors

Actions or reactions of an individual that can be directly seen and measured, often used in psychological assessments.

Perceived

The way in which an individual interprets or understands something based on their senses and cognition.