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:

Retired Workers

Individuals who have withdrawn from the workforce after reaching the age of retirement, often eligible for pensions or retirement benefits.

Flexible Schedules

Work arrangements allowing employees varying arrival and departure times, as well as the possibility of working from different locations.

Human Capital

The abilities, expertise, and experiences held by a person or group, considered in relation to their worth for an organization.

Surplus

An excess of resources or assets beyond what is needed, often referring to budgetary or inventory contexts.