Question
Assume that Company A uses the indirect method for the operating section of the statement of cash flow. For items 8 through 10, select the
Assume that Company A uses the indirect method for the operating section of the statement of cash flow. For items 8 through 10, select the answer from the following choices:
A. as an addition to income in the operating section of the SCF
B. as a subtraction from net income in the operating section of the SCF
C. as an increase in cash in the investing section of the SCF
D. as a decrease in cash in the investing section of the SCF
E. as an increase in cash in the financing section of the SCF
F. as a decrease in cash in the financing section of the SCF
G. as a disclosure in the Supplementary Schedule for Noncash Investing and Financing Activities
8. Company G purchased equipment with the issue of notes payable.
9. Company G had an increase in short-term trade notes payable
10.Company G had an increase in short-term notes payable (issued to borrow cash)
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