Question
Hill uses the indirect method to prepare its statement of cash-flows. It collected tuition from students on Jan 1 and properly recorded it. However, the
Hill uses the indirect method to prepare its statement of cash-flows. It collected tuition from students on Jan 1 and properly recorded it. However, the accountant forgot to book the adjusting entry at the end of the period.
Characterize the following statement: "This oversight will affect the reported amount of operating cash-flows because the fact we did not decrease a liability will affect the working capital adjustments in our statement of cash-flows."
A)The statement is always true.
B)No answer text provided.
C)The statement is sometime true.
D)The statement is never true.
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