A Company's Salaries Payable Account Decreased by $1,000 During the Year.Which

question 146

Multiple Choice

A company's salaries payable account decreased by $1,000 during the year.Which of the following would appear on the statement of cash flows prepared using the indirect method?

• A)An addition under investing activities
• B)A deduction under investing activities
• C)An addition under operating activities
• D)A deduction under operating activities

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Definitions:

Loan

A financial agreement where a borrower receives a specific amount of money from a lender and is obligated to repay it back with interest over a predetermined period.

Maturity Matching

A strategy in finance where the duration of investments in assets is matched with the duration of liabilities or obligations, aiming to reduce financial risk.

Net Operating

Refers to the profit a company makes from its usual business operations, before taxes and interest, indicating the financial health of the company's core activities.

Short-term Rates

Interest rates applying to loans or debt instruments with maturities typically less than one year; often influences other rates in the economy.