When Preparing the Statement of Cash Flows Using the Indirect

question 70

Multiple Choice

When preparing the statement of cash flows using the indirect method,an increase in accounts payable would appear as:

• A) a decrease in the operating activities section
• B) an increase in the operating activities section
• C) a use of cash in the investing activities section
• D) a source of cash in the investing activities section

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Definitions:

Consciously Decides

Consciously decides refers to making a decision with full awareness and intention, after careful thought.

Pay Attention

The act of focusing thought or senses towards a particular stimulus or task, ensuring awareness and cognitive processing.

Cognitive Frameworks

Mental structures that guide an individual's perception, interpretation, and response to their surroundings and information.

Organized Knowledge

Organized knowledge refers to information that has been systematically arranged and classified for easy access, interpretation, and use.