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?

• A)An increase of $120,000.
• B)A decrease of $120,000.
• C)An increase of $80,000.
• D)A decrease of $80,000.

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Definitions:

Impression Management

Strategies individuals or organizations use to influence the perceptions of others, often to appear more favorable or competent.

Personal Attributes

Characteristics or qualities that define an individual's personality and behavior.

Fundamental Attribution Error

Overestimates internal factors and underestimates external factors as influences on someone’s behaviour.

Self-Serving Bias

Self-serving bias explains personal success by internal causes and personal failures by external causes.