The Following Information Was Taken from the Operating Activity Section

question 145

Multiple Choice

The following information was taken from the operating activity section of the 2014 statement of cash flows for Limited Corp: Based on the information provided, which one of the following conclusions is correct?

• A)Accounts payable decreased $2,000 in 2014.
• B)Inventories increased $8,000 in 2014.
• C)The direct method was used to prepare the operating section of the cash flow statement.
• D)Cash payments of merchandise exceeded cost of goods sold by $2,000.

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Definitions:

Loam

A rich soil blend, containing a balance of silt, sand, and clay, along with organic matter.

Epiphytes

Plants that grow on other plants for physical support but do not derive nutrients from them, obtaining moisture and nutrients from the air, rain, and sometimes from debris accumulating around them.

Aerial Roots

Roots that are not buried in soil but instead hang in the air, found in certain plants, where they absorb moisture from the atmosphere and sometimes aid in attachment.

Soil PH

A measure of the acidity or alkalinity of soil, affecting nutrient availability, microbial activity, and plant growth.