A Company Uses the Indirect Method to Prepare the Statement

question 18

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 $58,000 will be subtracted from sales revenue.
• B)The increase of $58,000 will be added to net income.
• C)The increase of $58,000 will be subtracted from net income.
• D)The increase of $58,000 will be added to sales revenue.

---

Definitions:

Anthropometrics

The measurement of the size, shape, and composition of the human body.

Qualitative Methods

Research methods that collect and analyze non-numerical data to understand concepts, opinions, or experiences.

'Etic' Analyses

Research strategies in anthropology and cross-cultural psychology that emphasize the etic, or outsider’s perspective, focusing on cross-cultural comparisons.

'Emic' Analyses

Cultural studies or analyses that are conducted from within the cultural group, using concepts and categories that are meaningful and relevant to the group itself.