(Appendix) When Preparing a Schedule for the Calculation of Cash

question 34

Multiple Choice

(Appendix) When preparing a schedule for the calculation of cash generated from operating activities under the direct method, the decrease in Merchandise Inventory is

• A) added to cost of goods sold.
• B) added to operating expenses.
• C) subtracted from cost of goods sold.
• D) subtracted from operating expenses.

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Definitions:

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