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Suppose we are looking at the cash flow statement constructed using the INDIRECT method. We see a NEGATIVE adjustment of $5000 related to accounts payable.
Suppose we are looking at the cash flow statement constructed using the INDIRECT method. We see a NEGATIVE adjustment of $5000 related to accounts payable. Which of the following are correct interpretations of this? SELECT ALL THAT APPLY
1. The firm paid $5000 more to suppliers than they had recorded as expense on the income statement this year.
2. The firm paid $5000 to suppliers this year
3. The firm received $5000 from customers this year
4. The firm paid $5000 less to suppliers than they had recorded as an expense on the income statement this year
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