A Company Reported an Increase in Accounts Payable and a Decrease

question 80

Multiple Choice

A company reported an increase in accounts payable and a decrease in inventory during 2014. Which of the following statements is correct?

• A) Cash paid to suppliers equals cost of goods sold plus both the increase in accounts payable and the decrease in inventory.
• B) Cash paid to suppliers equals cost of goods sold minus both the increase in accounts payable and the decrease in inventory.
• C)Cash paid to suppliers equals cost of goods sold minus the increase in accounts payable, plus the decrease in inventory.
• D)Cash paid to suppliers equals cost of goods sold plus the increase in accounts payable, minus the decrease in inventory.

Distinguish between the market beta and individual stock betas.

Recognize the relationship between a stock's beta and its standard deviation.

Understand the concepts of short-run and long-run equilibriums in the aggregate demand-aggregate supply model.

Explain the mechanisms that move an economy from short-run to long-run equilibrium.

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Definitions:

External Validity

The degree to which a study's findings can be applied to different situations and various individuals.

Extraneous Variables

Variables that can influence the outcome of an experiment but are not the variables being studied.

Negative Correlation

A relationship between two variables in which one variable increases as the other decreases, and vice versa.

Qualitative Research

A research methodology that seeks to understand phenomena through the collection and analysis of non-numerical data, such as interviews and observations.