A Company Uses the Indirect Method to Prepare the Statement

question 89

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 salary payable?

• A)The decrease of $3,000 will be added to net income.
• B)The decrease of $3,000 will be added to cost of goods sold.
• C)The decrease of $3,000 will be subtracted from cost of goods sold.
• D)The decrease of $3,000 will be subtracted from net income.

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Definitions:

Classic Two-Party Negotiation

A negotiation framing between exactly two parties where each negotiates to settle on terms or reach an agreement, typically used in business and legal scenarios.

Bargaining Zone

The range within which parties are willing to negotiate and find an agreement in negotiations or bargaining scenarios.

Reservation Point

The lowest acceptable value or outcome an individual is willing to accept in a negotiation.

Conflict Management Styles

The approaches and techniques used by individuals or groups to handle disagreements, confrontations, or disputes effectively.