When Preparing a Statement of Changes in Financial Position Using

question 38

Multiple Choice

When preparing a statement of changes in financial position using the cash basis for defining funds, an increase in ending inventory over beginning inventory will result in an adjustment to reported net earnings because

• A) Funds were increased since inventory is a current asset
• B) The net increase in inventory reduced cost of goods sold but represents an assumed use of cash
• C) Inventory is an expense deducted in computing net earnings, but is not a use of funds
• D) All changes in noncash accounts must be disclosed under the all financial resources concept

Understand the frequency ranges and technologies supporting wireless peripherals such as mice.

Understand the proper storage techniques for electronic components to prevent damage.

Identify health risks and appropriate safety measures when handling electronic devices and their consumables.

Know the correct procedures for dealing with electrical fires and the safe use of fire extinguishers.

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Definitions:

Break-Even Point

The point at which total costs match total revenue, meaning there is neither profit nor loss.

Sales Differential

Sales differential is the difference in sales volume between a company’s actual sales and a predetermined benchmark, such as past sales performance or market expectations.

Core Value

Fundamental beliefs or principles that guide an organization's actions and decision-making.

IBM

International Business Machines Corporation, a global technology company known for its computer hardware, software, and IT services.