In Preparing a Statement of Cash Flows Under the Indirect

question 117

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.

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Definitions:

Foreclosure

is a legal process in which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments by forcing the sale of the asset used as the collateral for the loan.

Chapter 13

Refers to a type of bankruptcy process codified in the United States Bankruptcy Code, allowing for the repayment of some or all debt over time.

Occupational Safety

Practices and policies in place to ensure the health and safety of employees in the workplace.

Enforcement Branch

pertains to a segment of government or an organization with the responsibility to ensure laws, regulations, or rules are being followed.