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:

Descartes

A French philosopher, mathematician, and scientist, often referred to as the father of modern philosophy, known for his statement, "I think, therefore I am."

Spinoza

A 17th-century Dutch philosopher known for his works on ethics, politics, and religion, emphasizing the importance of rationalism and monism.

Idealist Viewpoints

Idealist Viewpoints are philosophical stances that prioritize the mental, spiritual, or ideal realm over the physical or empirical.

Berkeley

An Irish philosopher who proposed idealism, the theory that reality exists only in the minds of individuals and that what we perceive as physical objects are merely collections of ideas.