For each of the following operating activities, select whether it is a source of cash, a use of cash, neither under the indirect method.
-increase in Wages Payable
A)source
B)use
C)neither

Question

Quizplus · Accepted Answer

An increase in Wages Payable is a source of cash under the indirect method because it indicates that the company has incurred expenses (wages) that have not yet been paid out in cash, thus conserving cash.

For Each of the Following Operating Activities, Select Whether It