A Company Uses the Indirect Method to Prepare the Statement

question 22

Multiple Choice

A company uses the indirect method to prepare the statement of cash flows.How will the adjustment to reflect the amount of cash payments to employees be presented on the statement?

• A)The adjustment will be for the increase or decrease in accrued expenses for the period and will adjust net income in the operating activities section.
• B)The adjustment will be for the increase or decrease in accounts receivable for the period and will adjust net income in the operating activities section.
• C)The adjustment will be for the increase or decrease in inventory for the period and will adjust net income in the operating activities section.
• D)The adjustment will be for the increase or decrease in accounts payable for the period and will adjust net income in the operating activities section.

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Definitions:

Fake Treatment

A placebo or sham treatment, with no therapeutic effect, used as a control in testing new drugs or treatments.

Control Group

In experimental research, a group of subjects that does not receive the treatment being tested, used as a benchmark to measure the effect of the treatment on another group.

Operational Definition

A clear, precise description of a variable in terms of the procedures or operations used to measure or identify it.

Anxiety

Anxiety is a mental health disorder characterized by feelings of worry, anxiety, or fear that are strong enough to interfere with one's daily activities.