During Year 9, Hart Motors Corp

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.