A Company Uses the Direct Method to Prepare the Statement

question 48

Multiple Choice

A company uses the direct method to prepare the statement of cash flows.How will the amount of cash payments to employees be computed?

• A)Cash payments to employees will be equal to salary expense plus the beginning balance in salary payable.
• B)Cash payments to employees will be equal to salary expense plus the ending balance in salary payable.
• C)Cash payments to employees will be equal to salary expense plus the increase in salary payable.
• D)Cash payments to employees will be equal to salary expense plus the decrease in salary payable.

---

Definitions:

Information Richness

The capacity of information to change understanding within a time interval, conveying complex messages that have the potential to alter receiver's perceptions.

Data Capacity

The volume of data that can be stored, processed, or transmitted by a system or device within a given timeframe.

Reflective Listening

A communication technique in which the listener repeats back what the speaker says, to confirm understanding and show attentiveness.

Empathy

The ability to understand and share the feelings of another, allowing for emotional connection and comprehension.