The Following Items Were Reported on the Balance Sheets and Income

question 145

Multiple Choice

The following items were reported on the balance sheets and income statement for Bezos Corp.: $\begin{array}{lr}\text { Accounts payable, December } 31,2017 & \$ 42,000 \\\text { Accounts payable, December } 31,2018 & 48,000 \\\text { Operating expenses } & 286,000\end{array}$ How would the change in accounts payable be reported in the Operating Activities section of the statement of cash flows under the indirect method?

• A)As an addition to operating expenses
• B)As a deduction from operating expenses
• C)As an addition to net income
• D)As a deduction from net income

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