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What Is the Net Adjustment to Net Income with Respect

question 129

Multiple Choice

What is the net adjustment to net income with respect to the determination of cash flows from operating activities when inventory increases $100,000 and accounts payable increases $20,000?

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Definitions:

Pre-existing Duty

A rule in contract law that states if someone is already legally obligated to perform a certain duty, promising to perform that same duty does not constitute a valid consideration for a new contract.

Employer

A person or organization that hires people to work for wages or salary.

Endangerment

The act of putting someone or something at risk or in danger of being harmed or destroyed.

Laws

Rules and guidelines, established by a community or authority, governing behavior.

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