Under the Indirect Method,an Increase in Wages PayableWages Payable Would

question 12

True/False

Under the indirect method,an increase in wages payableWages Payable would be added back to net income when calculating net cash flow from operating activities.

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Definitions:

Alternative Foregone

The next best choice available to someone who has made a decision, also known as the opportunity cost.

Opportunity Costs

The financial downside to eschewing the next top alternative in the spectrum of choices.

Marginal Costs

Marginal costs refer to the additional cost incurred from producing one more unit of a good or service.

Microeconomics

The branch of economics that studies the behavior of individuals and firms in making decisions on the allocation of limited resources.