Assume a Company Uses the Direct Method to Prepare Its

question 136

Multiple Choice

Assume a company uses the direct method to prepare its statement of cash flows.If the company's inventory and accounts payable both increase during the accounting period,how would these changes affect cash flow calculations?

• A)The changes in each account are both added to net income.
• B)The change in inventory is subtracted from cost of goods sold and the change in accounts payable is added to cost of goods sold to find the cash paid to suppliers.
• C)The changes in each account are both subtracted from net income.
• D)The change in inventory is added to cost of goods sold and the change in accounts payable is subtracted from cost of goods sold to find the cash paid to suppliers.

Recognize factors that enhance or inhibit the generalizability of research findings across different populations and settings.

Understand the impact of using diverse populations, including nonhuman animals, in psychological research.

Distinguish between internal and external validity.

Grasp the importance and methods of replicating research findings.

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Definitions:

Urban Growth

The process by which cities expand in terms of population and infrastructure, often associated with economic development and migration from rural areas.

Social Networks

The structures made up of individuals or organizations that are connected by one or more specific types of interdependency, such as friendships, kinships, common interests, financial exchanges, or beliefs.

Concentric Zone Model

A model in urban sociology proposing that cities grow in concentric rings, with each ring representing different types of land use and social groups.

Working Class

A social group consisting of people employed in lower-tier jobs, often involving manual or industrial labor, and characterized by lower income levels.