Assuming the Use of the Indirect Method to Prepare the Statement

question 1

Essay

Assuming the use of the indirect method to prepare the statement of cash flows, indicate whether each of the following items would be added to net income, subtracted from net income or not included in the operating activity section. Use the letters "A" for added; "S" for subtracted or "N" for not included in operating activity section. $$\begin{array} { | l | l | l | } \hline & & \text { Answers } \\\hline \text { a. } & \text { Increase in Treasury Stock } & \\\hline \text { b. } & \text { Decrease in Interest Payable } & \\\hline \text { c. } & \text { Increase in Unearned Revenue } & \\\hline \text { d. } & \text { Increase in Bonds Payable } & \\\hline \text { e. } & \text { Decrease in Treasury Stock } & \\\hline \text { f. } & \text { Increase in Inventory } & \\\hline \text { g. } & \begin{array} { l } \text { Decrease in Marketable Securities (Available for } \\\text { sale securities) }\end{array} & \\\hline \text { h. } & \text { Gain on Sale of Land } & \\\hline \text { i. } & \text { Increase in Buildings } & \\\hline \text { j. } & \text { Decrease in Supplies } & \\\hline\end{array}$$

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Definitions:

Single Topic

Focuses exclusively on one specific subject matter or area of interest.

Full Case

A packaging and logistics term referring to shipping or storing products in their complete or original packaging units.

Frustration

An emotional response triggered by experiencing obstacles or hindrances towards achieving a goal.

Lack of Information

The absence of sufficient or relevant data needed to understand a situation or make decisions.