Direct method Flashcards
1
Q
cash received from customers
A
sales
Accounts receivable
+ decrease
- increase
2
Q
Cash paid for merchandise
A
COGS/ COMS
inventories
+ increase
- decrease
Accounts payable
- increase
+ decrease
3
Q
cash paid for operating expenses
A
other operating expenses
Prepaid
+ increase
- decrease
accrued expenses payable
+ decrease
- increase
salaries payable/ wages payable
+ decreases
- increases
4
Q
cash paid for interest
A
interest expense
interest payable
+ decreases
- increases
5
Q
cash paid for income tax
A
income tax expense
income tax payable
+ decreases
- increases
