A Company Uses the Direct Method to Prepare the Statement

question 180

Multiple Choice

A company uses the direct method to prepare the statement of cash flows.It presents the following amounts on its financial statements.

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

• A)The increase of $3,500 will be subtracted from salary expense to determine payments to employees.
• B)The increase of $3,500 will be subtracted from net income.
• C)The increase of $3,500 will be added to salary expense to determine payments to employees.
• D)The increase of $3,500 will be added to net income.

Understand the control features of a voucher system and how it strengthens internal control.

Comprehend the recording and approval processes in a voucher system and the preparation of related journal entries.

Identify different types of accounts and their roles within the voucher system.

Identify and locate various precordial electrodes on the body.

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Definitions:

ICE Futures Canada

A marketplace where futures contracts for commodities such as canola are traded.

Derivatives Products

Financial instruments whose value is derived from the value of one or more underlying assets or indices.

Underwriters

Financial professionals who assess the risk and establish the price of securities in initial public offerings (IPOs) or other securities offerings.

Roadshow Presentations

Series of presentations made by the management of a company planning to go public or issue new securities, aimed at potential investors across different locations.