If the Statement of Sources and Uses of Cash Shows

question 59

Multiple Choice

If the Statement of Sources and Uses of Cash shows a decrease in cash balance, which of the following changes might have eliminated that decrease?

• A)increase in cash dividends paid
• B)increase in accounts payable
• C)increase in accounts receivable
• D)increase in inventories

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Definitions:

Cost Of Goods Sold

In a perpetual inventory system, an account that records the cost of merchandise inventory used to make the sale. Also, it is the total cost of the goods which were sold to customers.

Finished Goods Inventory

Products that are completed and ready for sale but still remain in the company's inventory.

Cost Of Goods Manufactured

The total cost incurred to produce goods within a specific period, including materials, labor, and overhead.

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including both materials and direct labor costs.