If a Company Uses the Indirect Method to Prepare the Statement

question 154

Multiple Choice

If a company uses the indirect method to prepare the statement of cash flows, how would the adjustment to reflect the amount of cash payments to employees be presented on the statement of cash flows?

• A)The adjustment will be for the increase or decrease in accounts payable during the period and will adjust net income in the operating activities section in the statement of cash flows.
• B)The adjustment will be for the increase or decrease in accounts receivable during the period and will adjust net income in the operating activities section in the statement of cash flows.
• C)The adjustment will be for the increase or decrease in inventory during the period and will adjust net income in the operating activities section in the statement of cash flows.
• D)The adjustment will be for the increase or decrease in wages payable during the period and will adjust net income in the operating activities section in the statement of cash flows.

---

Definitions:

Emotional Benefits

Emotional benefits are the positive feelings or emotional responses a consumer perceives they will gain from using a product or service.

Smartphone Users

Individuals who use smartphones, which are mobile phones with advanced features like internet connectivity and the ability to run apps.

Shopping-related Information

Data or details relevant to the purchasing of goods or services.

Audience Attention

The level of focus and interest an audience gives to a message or presentation.