A Company Uses the Direct Method to Prepare the Statement

question 158

Multiple Choice

A company uses the direct 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 $18,000 will be subtracted from net income.
• B)The increase of $18,000 will be added to net income.
• C)The increase of $18,000 will be added to purchases to determine payments to suppliers.
• D)The increase of $18,000 will be subtracted from purchases to determine payments to suppliers.

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Definitions:

Retrieval Cues

External or internal prompts that aid in the recall of information from memory, facilitating access to stored memories.

Long-Term Memory

A type of memory capable of storing a large amount of information for potentially unlimited duration, including facts, experiences, and skills.

Short-Term Memory

The part of the memory system where information is stored for a brief period, typically from a few seconds to a minute.

Memory Recall

The process of retrieving information from the past, which can be consciously remembered such as facts, events, and experiences.