Schweser Q on wages payable
When preparing a statement of cash flows under the indirect method, the adjustment to net income for an icnrease in WP and a decrease in the deferred tax liability on the balance sheet compared to prior reporting period is
WP Decrease in DTL
A no adjustment
B +
C + no adjustment
D +
An explanation would be helpful, I thought that when wages payable goes up, you are paying your employees more, so the NI would go down? |