Use the Following Information for Questions

question 109

Multiple Choice

Use the following information for questions
Boreal Corporation is a private corporation reporting under ASPE and uses the indirect method when preparing its statement of cash flows.The company has engaged in the following transactions.For each transaction, indicate where it would be reflected on the statement of cash flows.
-An increase in inventory from year one to year two:

• A)operating activities section
• B)investing activities section
• C)financing activities section
• D)does not represent a cash flow

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Definitions:

Activity

The engagement in tasks or actions aimed at achieving a certain objective or result.

Economic Perspective

A viewpoint that emphasizes analyzing problems and making decisions based on economic principles and models.

Marginal Benefits

The boost in pleasure or benefit experienced from the consumption or creation of one extra unit of a good or service.

Marginal Costs

The boost in total charges incurred by producing one more unit of a product or service.