A Company Uses the Indirect Method to Prepare the Statement

question 107

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 salary payable?

• A)The increase of $9000 will be added to cost of goods sold.
• B)The increase of $9000 will be added to net income.
• C)The increase of $9000 will be subtracted from cost of goods sold.
• D)The increase of $9000 will be subtracted from net income.

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Definitions:

Perceptual Set

A psychological framework that influences how we perceive and interpret sensory information based on our expectations, culture, and past experiences.

Top-Down Processing

The operation in sensation and perception, launched by cognitive processing at the brain’s higher levels, that allows the organism to sense what is happening and to apply that framework to information from the world.

Absolute Threshold

The minimum intensity of stimulation that must occur before you experience a sensation.

Sensory Threshold

The minimum level of stimulus intensity needed for a stimulus to be detected, marking the boundary between the sensory signal's absence and presence.