A company uses the direct method to prepare the statement of cash flows. It presents the following amounts on its financial statements. *Relates solely to the acquisition of inventory
What will appear in the operating activities section related to salaries payable?
A)The increase of $4500 will be subtracted from salary expense to determine payments to employees.
B)The increase of $4500 will be subtracted from net income.
C)The increase of $4500 will be added to salary expense to determine payments to employees.
D)The increase of $4500 will be added to net income.

Question

A company uses the direct method to prepare the statement of cash flows. It presents the following amounts on its financial statements.  *Relates solely to the acquisition of inventory
What will appear in the operating activities section related to salaries payable?
A)The increase of $4500 will be subtracted from salary expense to determine payments to employees. 
B)The increase of $4500 will be subtracted from net income. 
C)The increase of $4500 will be added to salary expense to determine payments to employees. 
D)The increase of $4500 will be added to net income.

Quizplus · Accepted Answer

The Answer of A company uses the direct method to prepare the statement of cash flows. It presents the following amounts on its financial statements.  *Relates solely to the acquisition of inventory
What will appear in the operating activities section related to salaries payable?
A)The increase of $4500 will be subtracted from salary expense to determine payments to employees. 
B)The increase of $4500 will be subtracted from net income. 
C)The increase of $4500 will be added to salary expense to determine payments to employees. 
D)The increase of $4500 will be added to net income.

A Company Uses the Direct Method to Prepare the Statement