A Company Uses the Direct Method to Prepare the Statement

question 2

Multiple Choice

A company uses the direct method to prepare the statement of cash flows. It presents the following amounts on its financial statements. *Relates solely to the acquisition of inventory
What will appear in the operating activities section related to salaries payable?

• A)The increase of $4500 will be subtracted from salary expense to determine payments to employees.
• B)The increase of $4500 will be subtracted from net income.
• C)The increase of $4500 will be added to salary expense to determine payments to employees.
• D)The increase of $4500 will be added to net income.

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Definitions:

Arrhythmia

An irregular heartbeat that can range from harmless to life-threatening conditions.

Electrodes

Conductive elements used to establish an electrical connection with the nonmetallic part of a circuit, often found in medical and industrial applications.

Examining Table

A table designed for patients to lie or sit on during a medical examination or treatment procedure.

ECG Test

A diagnostic tool that records the electrical activity of the heart and is used to detect heart problems.