A Company Uses the Indirect Method to Prepare the Statement

question 4

Multiple Choice

A company uses the indirect method to prepare the statement of cash flows.It presents the following data on its financial statements:

*Relates solely to the acquisition of inventory
What will appear in the operating activities section related to accounts receivable?

• A)The increase of $15,000 will be subtracted from sales revenue.
• B)The increase of $15,000 will be added to net income.
• C)The increase of $15,000 will be subtracted from net income.
• D)The increase of $15,000 will be added to sales revenue.

---

Definitions:

Entrepreneur

An individual who organizes, operates, and assumes the risk for a business venture, often innovating and creating new ways of doing business.

Career Forward

The advancement or progressive development of an individual's career path.

Self-management

This concept involves individuals taking responsibility for their own behavior and well-being, including setting goals and managing time and emotions.

Productivity

The metric for assessing how effectively a person, machine, or system transforms inputs into valuable outputs.