Solved

Match Each Item with the Correct Letter Below to Indicate

Question 222

Matching

Match each item with the correct letter below to indicate how each revenue or expense account on the income statement is adjusted when using the direct method to determine net cash flow provided by operating activities.

Premises:
Increase in Prepaid Expenses
Decrease in Accounts Payable
Increase in Accumulated Depreciation
Increase in Interest Payable
Decrease in Unearned Income
Increase in Long-Term Notes Payable
Decrease in Prepaid Insurance
Increase in Inventory
Increase in Accrued Expenses
Decrease in Accounts Receivable
Responses:
No adjustment necessary
Add item to related revenue or expense account balance
Subtract item from related revenue or expense account balance

Correct Answer:

Increase in Prepaid Expenses
Decrease in Accounts Payable
Increase in Accumulated Depreciation
Increase in Interest Payable
Decrease in Unearned Income
Increase in Long-Term Notes Payable
Decrease in Prepaid Insurance
Increase in Inventory
Increase in Accrued Expenses
Decrease in Accounts Receivable
Related Questions

Q64: Match the balance sheet account with the

Q212: Match each term with the appropriate definition.Not

Q213: Match each term with the appropriate definition.Not

Q214: The management team of Wickersham Brothers Inc.is

Q215: Match each term with the appropriate definition.Not

Q216: Match each term with the appropriate definition.Not

Q217: Equipment with a cost of $80,000 and

Q219: Match each term with the appropriate definition.Not

Q220: Match each term with the appropriate definition.Not

Q221: Choose the appropriate letter to match the

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents