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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Definitions:

Suspect Classifications

Categories or classes of individuals that are likely to receive discriminatory treatment and thus warrant heightened scrutiny under constitutional equal protection analysis.

Equal Protection Clause

A provision in the Fourteenth Amendment to the United States Constitution that requires states to treat all individuals equally under the law.

Constitution

A system of fundamental principles or established precedents according to which a state or other organization is governed.

Procedural Due Process

Procedural Due Process is a legal principle requiring that certain procedures, such as fair hearings, are followed before depriving a person of their rights or property to ensure fairness.