Which Combination Is the Appropriate Operation to Perform to the Following

question 7

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) \[\begin{array} { | l | l | l | }
• \hline \text { Decrease in inventories } & \text { Decrease in deferred tax assets } & \text { Increase in accounts receivable } \\
• \hline \text { add } & \text { subtract } & \text { subtract } \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | l | l | }
• \hline \text { Decrease in inventories } & \text { Decrease in deferred tax assets } & \text { Increase in accounts receivable } \\
• \hline \text { add } & \text { add } & \text { subtract } \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | l | l | }
• \hline \text { Decrease in inventories } & \text { Decrease in deferred tax assets } & \text { Increase in accounts receivable } \\
• \hline \text { subtract } & \text { subtract } & \text { add } \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | l | l | }
• \hline \text { Decrease in inventories } & \text { Decrease in deferred tax assets } & \text { Increase in accounts receivable } \\
• \hline \text { subtract } & \text { add } & \text { subtract } \\
• \hline
• \end{array}\]

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Definitions:

MSE

MSE stands for Mean Squared Error, a measure used in statistics to quantify the average of the squares of the errors or deviations—that is, the difference between the estimator and what is estimated.

Unit Change

A measure of the change in quantity or value of a variable when it increases by a single unit.

Held Constant

This term refers to keeping a variable unchanged throughout an experiment or analysis to isolate the effects of other variables.

Average Change

The mean amount by which a set of values increase or decrease.