Qtopia Company Uses the Direct Method to Prepare Its Statement

question 115

True/False

Qtopia Company uses the direct method to prepare its statement of cash flows. It has reported Cost of goods sold of $70,000 on its income statement for the year 2012. If the balance in accounts payable (for inventory suppliers only) has gone down by $5,000 during the year, then $5,000 will have to be added to $70,000 as part of the process to calculate payments to suppliers for inventory purchases.

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Definitions:

SDLC

The Software Development Life Cycle (SDLC) is a framework defining tasks performed at each step in the software development process.

Lower CASE Tools

Tools used to automate later stages in the SDLC (programming, testing, operation, and maintenance).

SDLC

Short for Software Development Life Cycle, it is a process for planning, creating, testing, and deploying an information system.

End-user Development

Refers to tools and methods that allow users with little to no programming skills to create or modify software applications or systems.