In Preparing a Statement of Cash Flows Under the Indirect

question 128

Multiple Choice

In preparing a statement of cash flows under the indirect method,an increase in accounts payable would be reported as a(n) :

• A)Addition to net income in the operating activities section.
• B)Deduction from net income in the operating activities section.
• C)Financing activity.
• D)Investing activity.

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Definitions:

Protective Tariffs

Duties levied on goods coming from abroad to safeguard local businesses from overseas competitors by increasing the cost of imports.

Second Seminole War

A conflict from 1835 to 1842 in Florida between the United States and the Seminole tribe, part of a series of conflicts known as the Seminole Wars.

African-Americans

A term referring to citizens or residents of the United States who have full or partial ancestry from any of the black racial groups of Africa, highlighting their cultural, historical, and social experiences.

Osceola

was a prominent leader of the Seminole people in Florida, known for his resistance against US forces during the Second Seminole War in the early 19th century.