Avatar Company Uses the Indirect Method to Prepare the Statement

question 12

Multiple Choice

Avatar Company uses the indirect method to prepare the statement of cash flows. Please refer to the following section of the comparative balance sheet: How will the change in Accounts payable be shown on the statement of cash flows?

• A)Operating activities minus positive cash flow
• B)Operating activities minus negative cash flow
• C)Financing activities minus positive cash flow
• D)Investing activities minus negative cash flow

---

Definitions:

Mental Health

A state of well-being in which an individual realizes their own abilities, can cope with the normal stresses of life, can work productively, and is able to make contributions to their community.

Diagnosable Mental Disorder

A mental or behavioral pattern that causes significant distress or impairment of personal functioning and meets specific diagnostic criteria.

Adult Americans

Individuals over the age of 18 who are citizens or permanent residents of the United States.

Disordered Anxiety

An excessive and persistent feeling of apprehension, often with physical symptoms, that disrupts daily functioning.