A Decrease in Merchandise Inventory Is

question 48

Multiple Choice

A decrease in merchandise inventory is:

• A) a source of cash under operating activities.
• B) a use of cash under operating activities.
• C) not reported on the statement of cash flows.
• D) a source of cash under investing activities.

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Definitions:

Accrued Interest

Interest that has been incurred but not yet paid or received at the end of the accounting period.

Maturity Date

The specified date on which the principal amount of a loan, bond, or other financial instrument is due to be paid in full.

Selling Price

The amount of money for which a product or service is sold to the customer.

Dividends Received

Income received from owning shares in a company, typically distributed from the company's profits.