When Preparing a Reconciliation of Net Income to Cash from Operations,an

question 23

Multiple Choice

When preparing a reconciliation of net income to cash from operations,an increase in the ending inventory over the beginning inventory will result in an adjustment to reported net income because

• A) cash is increased because inventory is a current asset.
• B) inventory is an expense deducted in computing net earnings,but is not a use of cash.
• C) the net increase in inventory is part of the difference between cost of goods sold and cash paid to suppliers.
• D) all changes in noncash accounts must be disclosed.

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Definitions:

Panic Disorder

A psychiatric disorder characterized by recurring unexpected panic attacks and the ongoing fear of having another attack.

Genetic Predisposition

A natural inclination or tendency for organisms to develop certain traits or diseases based on their genetic makeup.

Lactate

A compound produced during the breakdown of glucose in the body, often associated with muscle fatigue during intense exercise.

Biological Factors

Aspects relating to the biological makeup of individuals that influence their physiology and behavior.