Using the Direct Method to Prepare the Statement of Cash

question 47

Multiple Choice

Using the direct method to prepare the statement of cash flows, how would the amount of cash payments to employees categorized on the statement of cash flows?

• A)Cash payments to employees would be equal to salary expense plus the beginning balance in salaries payable.
• B)Cash payments to employees would be equal to salary expense plus the ending balance in salaries payable.
• C)Cash payments to employees would be equal to salary expense plus the decrease in salaries payable.
• D)Cash payments to employees would be equal to salary expense plus the increase in salaries payable.

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Definitions:

Card Sort

A method used in counseling or research, where individuals sort cards into categories as a way to explore preferences, values, interests, or psychological traits.

Occupations

Various kinds of jobs or professions where individuals engage in specific activities to earn a living or contribute to the economy.

Financial Needs

The necessary resources required to maintain a basic standard of living, including housing, food, healthcare, and education.

Self-Efficacy

The belief in one's ability to succeed in specific situations or accomplish a task, playing a critical role in how one approaches goals, tasks, and challenges.