On an Indirect Method Statement of Cash Flows, a Decrease

question 44

Multiple Choice

On an indirect method statement of cash flows, a decrease in inventory would be:

• A) reflected in the investing activities section
• B) deducted from net income
• C) added to net income
• D) netted against any decreases in accounts payable

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Definitions:

Joints

Natural fractures or separations in rocks without noticeable movement parallel to the surface of the fracture.

Uplifted

Raised or elevated geological formations, often due to tectonic movements.

Parallel

Lines or planes that are equally distant from each other at all points, never meeting or intersecting.

Physically Loosen

The process of breaking up compacted or consolidated materials, making them less dense and easier to move or erode.