Flannery Company Uses a Worksheet to Prepare Its Statement of Cash

question 6

Multiple Choice

Flannery Company uses a worksheet to prepare its statement of cash flows.The company also uses the indirect method for the Operating Activities section of its statement.For each of the following changes in the balance sheet, indicate what activity it affects and whether it is an addition or deduction.
-Inventory decreased

• A)Deducted from Operating activity
• B)Added to Operating activity
• C)Deducted from Investing activity
• D)Added to Investing activity
• E)Deducted from Financing activity
• F)Added to Financing activity

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Definitions:

Free Trade

International trade left to its natural course without tariffs, quotas, or other restrictions.

Canadian Labor

The workforce of Canada, including all employed and unemployed individuals actively seeking work within the country.

Autarky

is an economic system of self-sufficiency where an entity, typically a country, operates without importing or exporting goods.

Heckscher-Ohlin Model

An economic theory that proposes countries export what they can most efficiently and abundantly produce.