Which of the Following Items Would Be a Way to Manipulate

question 21

Multiple Choice

Which of the following items would be a way to manipulate the cash flow from operating activities amount on the statement of cash flows?

• A)Adding depreciation back to net income to determine cash flow from operating activities.
• B)Including interest expense and tax expense in the calculation of cash flow from operating activities.
• C)Recording an item that should be recorded as an operating activity as an investing activity.
• D)The cash flow statement cannot be manipulated.

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Definitions:

Product Availability

The state of being in stock and ready for purchase or delivery to consumers.

Customer Service Level

A measure of the performance of a company's services, in terms of how well it meets customer expectations and demands.

Supply Chain's Responsiveness

The ability of a supply chain to quickly adapt to changes in demand, supply, or environmental conditions.

Optimal Quantity

The most efficient amount of stock or product to order or hold to minimize costs and meet demand.