An Increase in Inventory Balance Would Be Reported in a Statement

question 72

Multiple Choice

An increase in inventory balance would be reported in a statement of cash flows using the indirect method (reconciliation method) as a(n)

• A) addition to net income in arriving at net cash flow from operating activities.
• B) deduction from net income in arriving at net cash flow from operating activities.
• C) cash outflow from investing activities.
• D) cash outflow from financing activities.

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Definitions:

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Treynor-Black Model

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Nonsystematic Standard Deviation

A measure of the variability of an investment's return due to factors specific to the investment or its issuer, excluding broader market influences.

Macroeconomic Risks

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