Under the Direct Method of Preparing the Statement of Cash

question 44

Multiple Choice

Under the direct method of preparing the statement of cash flows,which statement is CORRECT regarding the method of computing cash payments to suppliers for inventory?

• A)Cost of goods sold less a decrease in inventory plus an increase in accounts payable.
• B)Cost of goods sold plus an increase in inventory less an increase in accounts payable.
• C)Cost of goods sold plus an increase in inventory plus an increase in accounts payable.
• D)Cost of goods sold plus a decrease in inventory plus an increase in accounts payable.

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Definitions:

Boolean

A data type in programming that can hold one of two possible values: true or false.

Memory Management

The process of controlling and coordinating computer memory, including allocating portions to processes, releasing it when it is no longer needed, and managing swapping between main memory and disk when necessary.

Vector Class

A part of the Java Collection Framework, the Vector class represents a dynamic array that can grow or shrink in size, allowing it to contain a variable number of elements of any type.

Set Interface

An interface in Java representing a collection that cannot contain duplicate elements.