Multiple Choice Question

When using the indirect method, adding an increase in an account such as Wages and Salaries Payable to net income eliminates the effect of recording Wages and Salary Expense that Blank$\_\_\_\_\_\_$ this period.

Multiple choice question.

decreased net income, but has not been paid in cash

increased net income and increased cash flow

increased net income, but has not been paid in cash

decreased net income and decreased cash flow