A Company Uses the Direct Method to Prepare the Statement

A company uses the direct method to prepare the statement of cash flows. It presents the following amounts on its financial statements. *Relates solely to the acquisition of inventory
What will appear in the operating activities section related to salaries payable?

A) The increase of $4500 will be subtracted from salary expense to determine payments to employees.
B) The increase of $4500 will be subtracted from net income.
C) The increase of $4500 will be added to salary expense to determine payments to employees.
D) The increase of $4500 will be added to net income.

Correct Answer:

Verified

Show Answer