A Decrease in the Inventory Account During the Year Should

question 39

Multiple Choice

A decrease in the inventory account during the year should be reported on the statement of cash flows as:

• A)An increase in cash flows from operating activities
• B)An increase in cash flows from investing activities
• C)A decrease in cash flows from operating activities
• D)A decrease in cash flows from investing activities
• E)An increase in cash flows from financing activities

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Definitions:

Internal Business Process Measures

Metrics used to evaluate the efficiency and effectiveness of a company's internal operations.

Learning And Growth Measures

These are metrics used to evaluate an organization's efforts to improve employee capabilities, knowledge, and satisfaction, crucial for long-term success.

Tax Expense

The total amount of taxes a company is required to pay on its earnings.

Interest Expense

The cost incurred by an entity for borrowed funds over a period of time, typically reported on the income statement.