In Determining Net Cash Flow from Operating Activities, an Increase

question 13

Multiple Choice

In determining net cash flow from operating activities, an increase in merchandise inventory during a period ________.

• A) requires a subtraction adjustment to financing cash flows under the indirect method
• B) requires a subtraction adjustment to sales to customers under the direct method
• C) requires an addition adjustment to net income under the indirect method
• D) requires an addition adjustment to payments for merchandise under the direct method

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