The following information was taken from the financial records of Mr.Transmission: $\begin{array}{ll}
\text { Accounts payable, December 31,2014 } &\$ 88,000 \
\text { Accounts payable, December 31, 2013 } &99,000 \
\text { Operating expenses for 2014 } &999,000
\end{array}$
How would the change in accounts payable be reported in the operating activities section of the 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 information was taken from the financial records of Mr.Transmission: $\begin{array}{ll}
\text { Accounts payable, December 31,2014 } &\$ 88,000 \
\text { Accounts payable, December 31, 2013 } &99,000 \
\text { Operating expenses for 2014 } &999,000
\end{array}$ 
How would the change in accounts payable be reported in the operating activities section of the 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 information was taken from the financial records of Mr.Transmission: $\begin{array}{ll}
\text { Accounts payable, December 31,2014 } &\$ 88,000 \
\text { Accounts payable, December 31, 2013 } &99,000 \
\text { Operating expenses for 2014 } &999,000
\end{array}$ 
How would the change in accounts payable be reported in the operating activities section of the 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 Information Was Taken from the Financial Records of Mr.Transmission