When preparing a statement of cash flows u

问题单项选择题

When preparing a statement of cash flows under the indirect method, the adjustment to net income for an increase in wages payable (WP) and a decrease in the deferred tax liability (DTL) on the balance sheet compared to the prior reporting period is: Increase in WP Decrease in DTL（）①A. Negative No adjustment ②B. Positive Negative ③C. Positive No adjustment

A. ①

B. ②

C. ③

答案

参考答案：B

解析：

Both are liability accounts so the adjustment for an increase is to increase net income and the adjustment for a decrease is to decrease net income, both by the appropriate amounts.