Cash paid to suppliers under the direct method is computed as:
A) Cost of goods sold plus a decrease in inventory and minus an increase in accounts payable.
B) Cost of goods sold plus an increase in inventory and minus an increase in accounts payable.
C) Cost of goods sold minus a decrease in inventory and plus an increase in accounts payable.
D) Cost of goods sold minus an increase in inventory and plus an increase in accounts payable.

Question

Quizplus · Accepted Answer

The Answer of Cash paid to suppliers under the direct method is computed as:
A) Cost of goods sold plus a decrease in inventory and minus an increase in accounts payable.
B) Cost of goods sold plus an increase in inventory and minus an increase in accounts payable.
C) Cost of goods sold minus a decrease in inventory and plus an increase in accounts payable.
D) Cost of goods sold minus an increase in inventory and plus an increase in accounts payable.

Cash Paid to Suppliers Under the Direct Method Is Computed