ACCOUNTING MULTIPLE CHOICE:

1.)

2.)

Virginia Company uses the indirect method to prepare the statement of cash flows. Refer to the following section of the comparative balance sheet Virginia Company Comparative Balance Sheet December 31, 2018 and 2017 2018 Accounts Payable Accrued Liabilities Long-term Notes Payable Total Liabilities S4,000 2,000 84,000 $90,000 2017 Increasel(Decrease) $(2,000) 1,000 (6,000) (7,000) $6,000 1,000 90,000 $97,000 How will the change in Accounts Payable be shown on the statement of cash flows? O A. as a deduction from investing cash flows O B. as an addition to operating cash flows C, as a deduction from Net Income 0 D. as an addition to Net Income