A Company Uses the Indirect Method to Prepare the Statement

question 106

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 $66,000 will be subtracted from net income.
• B)The increase of $66,000 will be added to net income.
• C)The increase of $66,000 will be added to sales revenue.
• D)The increase of $66,000 will be subtracted from sales revenue.

---

Definitions:

High Supportive

Pertains to a leadership behavior characterized by showing concern for employees' well-being and individual needs, creating a friendly and supportive work environment.

Low Directive

A leadership style characterized by giving fewer orders and instructions, allowing more autonomy and self-guidance for followers.

Directive Behavior

A leadership style where instructions, regulations, and expectations are clearly and directly communicated.

Supportive Behavior

Actions aimed at providing assistance, encouragement, or comfort to others, often a key trait in effective leadership and team dynamics.