A Company Uses the Direct Method to Prepare the Statement

question 121

Multiple Choice

A company uses the direct 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 added to purchases to determine payments to suppliers.
• D)The increase of $10,000 will be subtracted from purchases to determine payments to suppliers.

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Definitions:

Cultural Relativism

A concept that suggests the values, knowledge, and behavior of people should be understood based on their own cultural context rather than judged against the criteria of another culture.

Sexual Harassment

Unwelcome sexual advances, requests for sexual favors, or other verbal or physical conduct of a sexual nature that affects an individual's employment, interferes with work performance, or creates a hostile work environment.

Same-Gender

Pertaining to individuals or groups that identify with the same gender, especially in contexts relating to sexual orientation, relationships, or identities.

Prestigious Occupations

Jobs or careers that are highly respected and admired in society, often associated with high social status and economic benefits.