Each of the Following Is an Adjustment to Convert Net

question 140

Multiple Choice

Each of the following is an adjustment to convert net income to net cash provided by operating activities except

• A)adding back noncash expenses.
• B)adding gains and deducting losses.
• C)analyzing changes to noncash current asset and current liability accounts.
• D)All of these answer choices are adjustments.

---

Definitions:

Inventory

The total quantity of goods and materials that a business holds for the purpose of resale or production.

Source Of Supply

The origin from which goods, services, or materials are obtained, which can influence cost, quality, and delivery time.

Square-root Rule

A supply chain principle stating that the total safety stock investment is proportional to the square root of the number of locations.

Stocking Locations

Facilities or areas where inventory is kept before being distributed to fulfill orders, essential for managing supply chains efficiently.