During the Year the Balance in the Accounts Payable Account

Multiple Choice

During the year the balance in the accounts payable account decreased by $8,000. In order to adjust the company's net income to a cash basis using the direct method on the statement of cash flows, it would be necessary to:

A) deduct the $8,000 from the sales revenue reported on the income statement.
B) add the $8,000 to the sales revenue reported on the income statement.
C) deduct the $8,000 from the cost of goods sold reported on the income statement.
D) add the $8,000 to the cost of goods sold reported on the income statement.