单选题
When preparing cash flow statements using the direct method and the indirect method, an increase in accrued liabilities for rent during the year would result in what adjustment to "rent expense" recorded on the income statement? Direct method Indirect method ①A. Increase Decrease ②B. Decrease Decrease ③C. Decrease Increase
【正确答案】
B
【答案解析】Under both the direct and indirect methods of presenting cash flow from operating activities, an increase in an accrued liability for rent expense will result in a decrease in rent expense to calculate cash rent paid.