During Year 9, Hart Motors Corp

question 15

Multiple Choice

During Year 9, Hart Motors Corp.had a net $100,000 decrease in Warranties Payable.The T-account work sheet for preparing the statement of cash flows

• A)adds this decrease in Warranties Payable so that cash flow from operations reports cash expenditures, not expenses.
• B)subtracts this decrease in Warranties Payable so that cash flow from operations reports cash expenditures, not expenses.
• C)adds this decrease in Warranties Payable so that cash flow from operations reports cash expenses, not expenditures.
• D)subtracts this decrease in Warranties Payable so that cash flow from operations reports cash expenses, not expenditures.
• E)subtracts this decrease in Warranties Payable so that cash flow from financing reports cash expenses, not expenditures.

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Definitions:

Population Standard Deviation

A measure of the dispersion or spread of a set of data points in a population.

Standard Error

The standard deviation of the sampling distribution of a statistic, commonly used to measure the accuracy of a sample mean.

Population Standard Deviation

A measure of the dispersion of a set of values in a population, reflecting how much the values differ from the mean of the population.