A Company Uses the Indirect Method to Prepare the Statement

question 46

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 payable?

• A)The increase of $8000 will be subtracted from net income.
• B)The increase of $8000 will be added to net income.
• C)The increase of $8000 will be subtracted from cost of goods sold.
• D)The increase of $8000 will be added to cost of goods sold.

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Definitions:

Avoid Mentioning

To deliberately not talk about or reference something specific.

Unhappy Customer

A customer who is dissatisfied with a product or service, potentially leading to complaints or negative feedback.

Resolve Problems

Resolve problems involves identifying issues, analyzing them, and then implementing solutions to address those issues effectively.

Ethical Communication

The practice of exchanging information in a truthful, fair, and respectful manner.