Using the Direct Method to Prepare the Statement of Cash

question 47

Multiple Choice

Using the direct method to prepare the statement of cash flows, how would the amount of cash payments to employees categorized on the statement of cash flows?

• A)Cash payments to employees would be equal to salary expense plus the beginning balance in salaries payable.
• B)Cash payments to employees would be equal to salary expense plus the ending balance in salaries payable.
• C)Cash payments to employees would be equal to salary expense plus the decrease in salaries payable.
• D)Cash payments to employees would be equal to salary expense plus the increase in salaries payable.

---

Definitions:

Computer Hardware

The physical components of a computer system, such as the central processing unit (CPU), memory, hard drives, and peripherals.

Device Driver

A small piece of software that tells the operating system and other software how to communicate with a piece of hardware.

Computer Hardware

The physical components of a computer system, including the motherboard, CPU, RAM, and storage devices.

Operating System

The software that supports a computer's basic functions, such as scheduling tasks, executing applications, and controlling peripherals.