A Company Uses the Indirect Method to Prepare the Statement

question 46

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 payable?

• A)The increase of $8000 will be subtracted from net income.
• B)The increase of $8000 will be added to net income.
• C)The increase of $8000 will be subtracted from cost of goods sold.
• D)The increase of $8000 will be added to cost of goods sold.

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Definitions:

Eating Disorders

Mental disorders characterized by abnormal eating habits that negatively affect a person's physical or mental health.

Self-esteem

An individual's subjective evaluation of their own worth, encompassing beliefs and emotions about oneself.

Self-control

The ability to regulate one's emotions, thoughts, and behavior in the face of temptations and impulses.

Sexual Health

A state of physical, mental, and social well-being related to sexuality; it requires a positive and respectful approach to sexuality and sexual relationships.