A Company Uses the Indirect Method to Prepare the Statement

question 18

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 receivable?

• A)The increase of $58,000 will be subtracted from sales revenue.
• B)The increase of $58,000 will be added to net income.
• C)The increase of $58,000 will be subtracted from net income.
• D)The increase of $58,000 will be added to sales revenue.

---

Definitions:

Path-Goal Leadership Model

A theory suggesting that a leader's effectiveness is based on their ability to clear the path to their followers' goals, by considering individual characteristics and environmental factors.

Directive Leadership

A leadership style characterized by the leader giving clear and specific commands and expecting immediate compliance from subordinates.

Supportive Leadership

Leadership style characterized by providing encouragement, empowerment, and professional support to employees.

Social Value

The total benefit to society from producing or providing a good or service, including both private benefits and any external benefits to the wider community.