A Company Uses the Direct Method to Prepare the Statement

question 1

Multiple Choice

A company uses the direct 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 payable?

• A)The increase of $15,000 will be subtracted from net income.
• B)The increase of $15,000 will be added to net income.
• C)The increase of $15,000 will be added to purchases to determine payments to suppliers.
• D)The increase of $15,000 will be subtracted from purchases to determine payments to suppliers.

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Definitions:

Situational Variables

External factors present in an individual's environment that can affect behaviors and outcomes in specific contexts.

Biological Factors

Aspects of biology that affect behaviors, health, and well-being, including genetics, brain chemistry, and physiological conditions.

Intimacy

Close familiarity or friendship; deep emotional or physical connection between people.

Young Adult

A young adult is an individual in the stage of life transition between adolescence and adulthood, often categorized by ages 18 to 25.