Question: In calculating cash flows from operating activities using the indirect method, an increase in accounts payable is: a. Deducted from net income. b. Added to

In calculating cash flows from operating activities using the indirect method, an increase in accounts payable is:

a. Deducted from net income.
b. Added to net income.
c. Not reported on a statement of cash flows.
d. Ignored because it does not affect cash.

Which of the following is considered a profitability ratio?

a. Inventory turnover ratio
b. Earnings per share
c. Debt ratio
d. Quick ratio

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

Which of the following statements does not correctly describe an adjustment to net income when determining cash flows from operating activities using the indirect method? An increase in accounts...

Q:

Which of the following is a noncash investing and financing activity? buying of merchandise inventory on account payment of a cash dividend issuing common stock in exchange for land payment of a...

Q:

Which of the following statements does not correctly describe an adjustment to net income when determining cash flows from operating activities using the indirect method? An increase in wages payable...

Q:

Which of the following should be added to net income in computing net cash flows from operating activities using the indirect method? a.a decrease in accounts payable b.an increase in accrued...

Q:

Fill in the Blank Question In preparing a cash flows from operating activities using the indirect method, an increase in accounts receivable would be ( added / subtracted ) to ( from ) net income.

Q:

In preparing a cash flows from operating activities using the indirect method, an increase in accounts receivable would be (added/subtracted) to (from) net income

Q:

Click to watch the Tell Me More Learning Objective 2 video and then answer the questions below. 1. While calculating cash flows from operating activities using the indirect method, which of the...

Q:

Testbank Question 87 In calculating cash flows from operating activities using the indirect method, a gain on the sale of equipment is O not reported on a cash flow statement. O added to profit. O...

Q:

43. Sale of an asset at a loss will affect which activities? a) Operating activity will have the loss added to profit; investing will increase for the proceeds on the sale. b) Operating activity will...

Q:

1. While calculating cash flows from operating activities using the indirect method, which of the following is added to the net income? Increase in accounts payable Decrease in sundry creditors...

Q:

What is the cycle time in a manufacturing operation?

Q:

A 1975 article in the magazine Science examined the graduate admissions process at Berkeley for evidence of gender bias. The following table shows the number of applicants accepted to each of four...

Q:

Exercise 6 - 2 ( 5 tatic ) Inventory costs LO C 1 Whiterg Russclales, antique dealers, purchased goods for $ 7 5 . 0 0 0 . Terms of ne purchase were FOB shipphing poink, and the cost of transporting...

Q:

Following payoff table (Table 3) shows profit for a decision Analysis problem with two decision alternatives and two states of nature. Table 3: Decision Alternatives States of Nature S1 S2 D1 960...

Q:

The number of people commenting on the statement

Q:

3. Choose a social incident in your local area. (a) List three points that you believe are the cause of the social incident and develop a model that shows a linear relationship. (b) What is the...

Q:

Peoples understanding of what is being said