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

---

Definitions:

Stomach Enzyme

Biological catalysts within the stomach that aid in the breakdown and digestion of proteins.

Alcohol Dehydrogenase

An enzyme that breaks down alcohol in the stomach before it enters the blood.

Delirium Tremens

A severe form of alcohol withdrawal involving sudden and severe mental or nervous system changes.

Withdrawal Reactions

Physical or emotional symptoms that occur after reducing or ceasing intake of a substance that was used regularly.