Which Combination Is the Appropriate Operation to Perform to the Following

question 63

Multiple Choice

Which combination is the appropriate operation to perform to the following accounts to reconcile net profit with net cash flows from operating activities?

• A) \[\begin{array} { | l | l | l | }
• \hline \text { Increase in inventories } & \text { Decrease in trade creditors } & \text { Increase in accrued expenses } \\
• \hline \text { add } & \text { subtract } & \text { subtract } \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | l | l | }
• \hline \text { Increase in inventories } & \text { Decrease in trade creditors } & \text { Increase in accrued expenses } \\
• \hline \text { add } & \text { add } & \text { subtract } \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | l | l | }
• \hline \text { Increase in inventories } & \text { Decrease in trade creditors } & \text { Increase in accrued expenses } \\
• \hline \text { subtract } & \text { subtract } & \text { add } \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | l | l | }
• \hline \text { Increase in inventories } & \text { Decrease in trade creditors } & \text { Increase in accrued expenses } \\
• \hline \text { subtract } & \text { add } & \text { subtract } \\
• \hline
• \end{array}\]

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Definitions:

Producer Surplus

The difference between what producers are willing to accept for a good or service versus what they actually receive, representing a measure of producer welfare.

Market Price

The ongoing price point for transactions involving assets or services in the open market.

Costs Of Production

Expenses incurred during the process of creating a product or service, including raw materials, labor, and overhead costs.

Firm

A business organization, such as a corporation or partnership, which sells goods or services in exchange for money.