A Company Uses the Direct Method to Prepare the Statement

question 2

Multiple Choice

A company uses the direct method to prepare the statement of cash flows. It presents the following amounts on its financial statements. *Relates solely to the acquisition of inventory
What will appear in the operating activities section related to salaries payable?

• A)The increase of $4500 will be subtracted from salary expense to determine payments to employees.
• B)The increase of $4500 will be subtracted from net income.
• C)The increase of $4500 will be added to salary expense to determine payments to employees.
• D)The increase of $4500 will be added to net income.

---

Definitions:

High Risk

Pertaining to a situation, condition, or activity that carries a significant chance of negative outcomes or dangers.

Bath Mat

A mat placed on the floor of a bathroom to prevent slipping when exiting the bath or shower, often made of absorbent materials.

IV Infusion Tubing

Flexible plastic tubing used to deliver fluids, medications, or nutrients directly into the veins.

Nursing Diagnosis

A clinical judgment about individual, family, or community experiences/responses to actual or potential health problems/life processes, which provides the basis for selecting nursing interventions.