The following information was taken from the financial records of Mr. Transmission: Accounts Payable, Dec 31, 2014 $88,000 Accounts Payable, Dec 31, 2013 99,000 Operating Expenses for 2014 999,000 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 a deduction from net income b As an addition to net income c As a deduction from operating expenses d As an addition to operating expenses
The following information was taken from the financial records of Mr. Transmission: Accounts Payable, Dec 31, 2014 $88,000 Accounts Payable, Dec 31, 2013 99,000 Operating Expenses for 2014 999,000 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 a deduction from net income b As an addition to net income c As a deduction from operating expenses d As an addition to operating expenses
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The following information was taken from the financial records of Mr. Transmission:
| Accounts Payable, Dec 31, 2014 | $88,000 |
| Accounts Payable, Dec 31, 2013 | 99,000 |
| Operating Expenses for 2014 | 999,000 |
How would the change in accounts payable be reported in the operating activities section of the statement of
|
a
|
As a deduction from net income
|
|
b
|
As an addition to net income
|
|
c
|
As a deduction from operating expenses
|
|
d
|
As an addition to operating expenses
|
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