Ingles Corp

question 19

Multiple Choice

Ingles Corp., a private company reporting under ASPE, engaged in the following transactions. For each transaction, indicate where, if at all, it would be classified on the statement of cash flows. Assume the indirect method is used. Ingles Corp. experienced an increase in inventory in the

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

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Definitions:

Future Costs

Costs that are expected to be incurred in upcoming periods.

Sunk Costs

Expenses that have already been incurred and cannot be recovered.

Alternatives

Different options or choices available in a decision-making scenario.

Relevant Cost

A cost that differs between alternatives in a decision. This term is synonymous with avoidable cost and differential cost.