Under the Indirect Method of Preparing the Statement of Cash

question 53

Multiple Choice

Under the indirect method of preparing the statement of cash flows, an increase in inventories is deducted from net income to calculate cash provided or used by operating activities because

• A)cash payments to customers were less than the inventory purchases made during the period.
• B)cash paid to acquire inventory was greater than cost of goods sold by the amount that inventories increased.
• C)cash payments to customers were larger than the inventory purchases made during the period.
• D)inventory purchases were less than the cost of goods sold by the amount that inventories increased.

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Definitions:

Pathogens

Microorganisms that can cause disease in another organism, including bacteria, viruses, fungi, and parasites.

Afferent Lymphatic Vessel

Vessels that carry lymph fluid towards lymph nodes, allowing for the filtration of harmful substances from the body.

Efferent Lymphatic Vessels

Vessels that carry lymph away from the lymph nodes towards the venous system.

Trabeculae

The network of supporting fibers within organs, especially spongy bone, providing structural support.