Question: When using the indirect method to prepare the statement of cash flows, a decrease in current liabilities is: a. subtracted from current liabilities in the

When using the indirect method to prepare the statement of cash flows, a decrease in current liabilities is:

a. subtracted from current liabilities in the cash flows from financing activities section.

b. subtracted from current assets in the cash flows from financing activities section.

c. added to net income in the cash flows from operating activities section.

d. added to inventory purchases in the cash flows from investing activities section.

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:

When using the indirect method to prepare the statement of cash flows a decrease in current liabilities is?

Q:

When using the indirect method to prepare the statement of cash flows, an increase in current assets is added to net income in the cash flows from operating activities section. added to equipment...

Q:

Using the indirect method to prepare a statement of cash flows, which of the following is subtracted from net income to calculate the net cash provided or used by operating activities? Decrease in...

Q:

5. When using the indirect method to prepare the statement of cash flows, depreciation expense should be presented as a(n): A) investing and financing activity not affecting cash. B) addition to net...

Q:

When using the indirect method to prepare the statement of cash flows, a decrease in in Accrued Liabilities is A. subtracted in the investing activities section B. subtracted in the operating...

Q:

If a company is using the indirect method to prepare the statement of cash flows, a decrease in the inventory account should be reported as: Multiple Choice A decrease in cash flows from investing...

Q:

If a company is using the indirect method to prepare the statement of cash flows, a decrease in the inventory account should be reported as: Multiple Choice A decrease in cash flows from investing...

Q:

If a company is using the indirect method to prepare the statement of cash flows, a decrease in the inventory account should be reported as: Multiple Choice A decrease in cash flows from investing...

Q:

When using the indirect method to prepare the statement of cash flows, an increase in noncash current assets is a. subtracted from net income in the cash flows from operating activities section....

Q:

8. Which of the following statements is TRUE regarding the indirect method of preparing a statement of cash flows? A)A decrease in inventory is subtracted from net income. B)A loss on the sale of an...

Q:

The plant manager has just purchased a piece of unusual machinery for $10,000. Its resale value at the end of 1 year is estimated to be $3000, because the device is sought by antique collectors,...

Q:

For each process in problem 7-3-15 [OLK] , (a) Develop an energy inventory on a rate basis (in kW) and draw an energy flow diagram for the cycle, and (b) Determine the energetic efficiency of the...

Q:

Please answer Prepare a dassified bulance sheet at Nowember 3 0 ( Lut cuerent ousets In onder of liguldiby ) NANHICX FQUIPMENT REPAIR Balanow shext For the Month Ended Nowember 3 0 , 2 0 0 5 Assets q...

Q:

A property management service is trying to compare the level of satisfaction of its tenants residing in three different housing complexes, Housing Complexes 1 through 3. For this purpose, they would...

Q:

What are their resources?

Q:

What groups exist with a mission to resist or hinder your organization?

Q:

If the existing information is not highly reliable, consider additional research, such as the following: Interviews with key people within the organization Review of organizational...