Multiple Choice
Assume the indirect method is used to compute net cash flows from operating activities.For this item extracted from the financial statements-Increase in Accounts Payable-indicate the effect on net income in arriving at net cash flows from operating activities by choosing one of the following:
A) Add to net income to arrive at net cash flows from operating activities.
B) Subtract from net income to arrive at net cash flows from operating activities.
C) Not used to adjust net income to calculate net cash flows from operating activities.
Correct Answer:
Verified
Correct Answer:
Verified
Q131: Bailey Corp.sold investments for $204,000 cash that
Q132: During 20x5,Oates Company had sales of $500,000,net
Q133: Lincoln Company engaged in this transaction: Abandoned
Q134: Cash equivalents include money market accounts,commercial paper,and
Q135: Interest paid on bonds payable would be
Q137: Lincoln Company engaged in this transaction: Sold
Q138: Lincoln Company engaged in this transaction: Acquired
Q139: Payment of dividends would be reflected as
Q140: Using the indirect method,calculate the amount of
Q141: The financing activities section of the statement