Valentine Corp

question 141

Multiple Choice

Valentine Corp. uses the indirect method to prepare the statement of cash flows. Refer to the following section of the comparative balance sheet: How will the change in Merchandise Inventory be shown on the statement of cash flows?

• A) addition to net income under the operating activities section
• B) subtraction from net income under the operating activities section
• C) positive cash flow under the financing activities section
• D) negative cash flow under the investing activities section

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Definitions:

Concise Sentence

A sentence that clearly and briefly conveys its point without unnecessary words.

Parking Problem

Issues or challenges related to finding available spaces to park vehicles, often due to high demand or limited supply in certain areas.

Corrective Action

Corrective action involves steps taken to rectify a problem or deviation from a set standard, aiming to prevent recurrence.

Good Business Writing

Refers to clear, concise, and purposeful writing tailored for business contexts, aimed at effectively conveying messages to stakeholders.