Excerpts from Deblois Corporation's Comparative Balance Sheet Appear Below

question 121

Multiple Choice

Excerpts from Deblois Corporation's comparative balance sheet appear below: Which of the following is the correct treatment within the operating activities section of the statement of cash flows using the indirect method?

• A)The change in Accounts Payable is added to net income; The change in Accrued Liabilities is subtracted from net income
• B)The change in Accounts Payable is added to net income; The change in Accrued Liabilities is added to net income
• C)The change in Accounts Payable is subtracted from net income; The change in Accrued Liabilities is added to net income
• D)The change in Accounts Payable is subtracted from net income; The change in Accrued Liabilities is subtracted from net income

---

Definitions:

Refrigerants

Fluids used in air conditioning and refrigeration systems to absorb and transport heat.

R-134a

A hydrofluorocarbon refrigerant used in air conditioning systems, known for its low impact on the ozone layer compared to previously used refrigerants.

Manifold Gauge Set

The shop station used to recycle, recharge, and diagnose A/C systems.

Hand Valves

Devices that control the flow of fluid through pipes or tubing, manually operated by a person.