A Company Uses the Direct Method to Prepare the Statement

question 55

Multiple Choice

A company uses the direct method to prepare the statement of cash flows. It presents the following data on its financial statements: *Relates solely to the acquisition of inventory
Which of the following is correct about salaries payable in the operating activities category of the cash flow statement?

• A)The increase of $10,000 will be subtracted from salary expense to determine payments to employees.
• B)The increase of $10,000 will be subtracted from net income.
• C)The increase of $10,000 will be added to salary expense to determine payments to employees.
• D)The increase of $10,000 will be added to net income.

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Definitions:

Coercive Leader

A leadership style characterized by the use of threats, punishment, and control to influence the behavior of followers.

Trait Viewpoint

A perspective in leadership theory that suggests certain inherent personality traits and characteristics can make an individual a good leader.

Process

A series of actions or steps taken in order to achieve a particular end.

Management

The process of dealing with or controlling things or people, often within an organization.