A company uses the indirect method to prepare the statement of cash flows. It presents the following data on its financial statements: *Relates solely to the acquisition of inventory
What will appear in the operating activities section related to salary payable?
A)The increase of $9000 will be added to cost of goods sold.
B)The increase of $9000 will be added to net income.
C)The increase of $9000 will be subtracted from cost of goods sold.
D)The increase of $9000 will be subtracted from net income.

Question

A company uses the indirect method to prepare the statement of cash flows. It presents the following data on its financial statements:  *Relates solely to the acquisition of inventory
What will appear in the operating activities section related to salary payable?
A)The increase of $9000 will be added to cost of goods sold. 
B)The increase of $9000 will be added to net income. 
C)The increase of $9000 will be subtracted from cost of goods sold. 
D)The increase of $9000 will be subtracted from net income.

Quizplus · Accepted Answer

The Answer of A company uses the indirect method to prepare the statement of cash flows. It presents the following data on its financial statements:  *Relates solely to the acquisition of inventory
What will appear in the operating activities section related to salary payable?
A)The increase of $9000 will be added to cost of goods sold. 
B)The increase of $9000 will be added to net income. 
C)The increase of $9000 will be subtracted from cost of goods sold. 
D)The increase of $9000 will be subtracted from net income.

A Company Uses the Indirect Method to Prepare the Statement