Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

During 2012, the accounts payable balance of Bennington Corp. decreased. Which of the following statements is true? This decrease indicates that Bennington paid less during

image text in transcribed

During 2012, the accounts payable balance of Bennington Corp. decreased. Which of the following statements is true? This decrease indicates that Bennington paid less during the period than it recognized as expenses on the income statement. This decrease is added to net income in the operating activities section of a statement of cash flows prepared under the indirect method. This decrease is deducted from net income in the operating activities section of a statement of cash flows prepared under the indirect method. This decrease is considered only when the operating activities section of a statement of cash flows is prepared under the direct method

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

College Accounting A Practical Approach Chapters 1-26

Authors: Jeffrey Slater

8th Edition

0130911429, 978-0130911421

More Books

Students also viewed these Accounting questions

Question

Describe the three parts of developing a new habit.

Answered: 1 week ago