Using the Indirect Method, an Increase in Inventory Would Be

question 81

Multiple Choice

Using the indirect method, an increase in inventory would be reported in a statement of cash flows as a(n)

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

Comprehend the concept of the time value of money and its importance in capital budgeting decisions.

Understand how to determine and interpret the internal rate of return (IRR) for an investment.

Ability to compare and assess different capital investment opportunities based on NPV and IRR computations.

Understand the effect of salvage value on the NPV of a project.

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Definitions:

Discharged

In legal contexts, to release someone from an obligation, duty, or liability.

Existing Liabilities

Financial obligations or debts that a company or individual currently owes and is responsible for repaying.

Submission

in legal terms means the act of presenting a document, proposal, or application to a person or authority for consideration or judgment.

Arbitration

A method of dispute resolution where an impartial third party, the arbitrator, makes a decision to resolve a conflict outside of court.