Under the direct approach for cash flow statement preparation, which of the following would equal the payments to suppliers?
A)Inventory plus change in accounts payable
B)Cost of goods sold plus change in inventory
C)Purchases plus change in accounts payable
D)Inventory plus change in purchases

Question

Quizplus · Accepted Answer

Under the direct approach, the payments to suppliers can be calculated by adding purchases to the change in accounts payable. Therefore, choice C, "Purchases plus change in accounts payable," is the correct answer. Choices A, B, and D are either incomplete or inaccurate calculations.

Under the Direct Approach for Cash Flow Statement Preparation, Which