The following items were reported on the balance sheets and income statements of Marshall Company: 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 an addition to operating expenses.
B)As a deduction from operating expenses.
C)As an addition to net income.
D)As a deduction from net income.

Question

The following items were reported on the balance sheets and income statements of Marshall Company:  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 an addition to operating expenses. 
B)As a deduction from operating expenses. 
C)As an addition to net income. 
D)As a deduction from net income.

Quizplus · Accepted Answer

The Answer of The following items were reported on the balance sheets and income statements of Marshall Company:  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 an addition to operating expenses. 
B)As a deduction from operating expenses. 
C)As an addition to net income. 
D)As a deduction from net income.

The Following Items Were Reported on the Balance Sheets and Income