Assume the Direct Method Is Used to Compute Net Cash

question 19

Multiple Choice

Assume the direct method is used to compute net cash flows from operating activities.For this item extracted from the financial statements-Decrease in Accounts Payable-indicate the effect on cash payments for purchases by choosing one of the following:

• A)Add to Cost of Goods Sold to compute cash payments for purchases.
• B)Subtract from Cost of Goods Sold to compute cash payments for purchases.
• C)Not used to adjust Cost of Goods Sold to compute cash payments for purchases.

---

Definitions:

Cover Letters

Brief documents that accompany resumes, introducing the applicant and highlighting their qualifications for a job.

Programmed Learning

An educational technique involving self-instruction with the aid of a special textbook or teaching machine that presents material structured in a logical sequence.

Computer Screen

A computer screen is an electronic display or monitor that projects graphical data or images generated by a computer's video card.

Printed Text

Written material that has been published on paper, including books, magazines, newspapers, and other printed materials.