A company uses the indirect method to prepare the statement of cash flows. How will the adjustment to reflect the amount of cash payments to suppliers be presented on the statement?
A) The adjustment will be for the increase or decrease in accounts payable for the period and will adjust net income in the operating activities section.
B) The adjustment will be for the increase or decrease in inventory for the period and will adjust net income in the operating activities section.
C) The adjustment will be for the increase or decrease in accrued expenses for the period and will adjust net income in the operating activities section.
D) The adjustment will be for the increase or decrease in accounts receivable for the period and will adjust net income in the operating activities section.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “A company uses the indirect method to prepare the statement of cash flows. How will the adjustment to reflect the amount of cash payments ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Brady corp. is considering the purchase of a piece of equipment that costs $20,000. projected net annual cash flows over the project's life are: year net annual cash flow 1 $ 3,000 2 8,000 3 15,000 4 9,000 the cash payback period is select one: a. 2.
Answers (1)
Why does adoption of new technology tend to increase supply?
Answers (1)
It costs Swifty Corporation $12 of variable and $5 of fixed costs to produce one bathroom scale which normally sells for $35. A foreign wholesaler offers to purchase 2800 scales at $15 each.
Answers (2)
In contrast to public markets, private markets are characterized by individually negotiated transactions that take place without the aid of a centralized market. Therefore, private markets will generally have:
Answers (1)
The company currently has production facilities to make athletic footwear in
Answers (1)
New Questions in Business
An A&E firm planning for a future expansion deposited $44,000 each year for 5 years into a sinking (investment) fund that was to pay an unknown rate of return.
Answers (1)
A billionaire offers to give you $5 billion if you will count out the amount in $1 bills or a lump sum of $5000.
Answers (2)
Gabrielle is the chief marketing officer of Boyd Pharmaceuticals. She is meeting with Trent, the chief financial officer to decide on the company's marketing communications budget.
Answers (1)
For high levels of quantity supplied where firms have reached near maximum capacity, supply becomes more elastic because firms may need to invest in additional capital in order to increase production further. True or False?
No Answers
Economics A. assumes irrationality if people are paid enough. B. assumes individuals are rational and respond to different incentives. C. assumes government involvement in the economy is always beneficial. D.
Answers (2)