Avatar Auto Parts Company Uses the Indirect Method to Prepare

question 38

Multiple Choice

Avatar Auto Parts Company uses the indirect method to prepare the statement of cash flows.Refer to the following section of the comparative balance sheet:

How will the change in Accounts Payable be shown on the statement of cash flows?

• A)as an addition to Net Income
• B)as a deduction from Net Income
• C)as a deduction from investing cash flows
• D)as an addition to operating cash flows

Analyze and interpret materials price and quantity variances.

Calculate and interpret direct labor rate and efficiency variances.

Understand and compute fixed manufacturing overhead variances, including volume and budget variances.

Apply variable overhead costs to products and compute variable overhead variances.

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