The following items were reported on the balance sheets and income statement for Hawkeye Corporation: How would the change in accounts payable be reported in the operating activities section of Hawkeye's statement of cash flows under the indirect method?
A) As an addition to operating expenses
B) As a deduction from operating expenses
C) As an addition to net income
D) As a deduction from net income

Question

The following items were reported on the balance sheets and income statement for Hawkeye Corporation:  How would the change in accounts payable be reported in the operating activities section of Hawkeye's statement of cash flows under the indirect method?
A) As an addition to operating expenses 
B) As a deduction from operating expenses 
C) As an addition to net income 
D) As a deduction from net income

Quizplus · Accepted Answer

The Answer of The following items were reported on the balance sheets and income statement for Hawkeye Corporation:  How would the change in accounts payable be reported in the operating activities section of Hawkeye's statement of cash flows under the indirect method?
A) As an addition to operating expenses 
B) As a deduction from operating expenses 
C) As an addition to net income 
D) As a deduction from net income

The Following Items Were Reported on the Balance Sheets and Income