A Decrease in the Inventory Account During the Year Should

question 9

Multiple Choice

A decrease in the inventory account during the year should be reported on the indirect method statement of cash flows as:

• A) An increase in cash flows from financing activities
• B) A decrease in cash flows from operating activities
• C) An increase in cash flows from operating activities
• D) An increase in cash flows from investing activities
• E) A decrease in cash flows from investing activities

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Definitions:

Psychological Empowerment

A state in which individuals feel a sense of control over their work and perceive their job as meaningful, contributing to a sense of competence and self-determination.

Empowering Leadership

A leadership style focused on giving employees autonomy, encouraging decision-making, and fostering their skills and confidence.

Flatter Organizations

Organizational structures with fewer hierarchical levels, facilitating better communication and faster decision-making.

Flexible

Characterizes entities or individuals that are adaptable to changes, capable of being bent or adjusted without breaking.