In a Company That Uses the Direct Method to Prepare

question 120

Multiple Choice

In a company that uses the direct method to prepare the statement of cash flows, the amount of cash it pays to employees is computed as

• A)salary expense plus the ending balance salaries payable.
• B)salary expense plus the decrease in salaries payable.
• C)salary expense plus the increase in salaries payable.
• D)salary expense plus the beginning balance in salaries payable.

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Definitions:

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Technological Advance

Progress or innovation in technology that often leads to improved efficiency, productivity, or capabilities.

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