An Increase in the Inventory Account from $10,000 at the Beginning

question 205

Multiple Choice

An increase in the Inventory account from $10,000 at the beginning of the year to $15,000 at the end of the year would be shown on the statement of cash flows prepared under the indirect method as:

• A) an addition to net income of $5,000 in order to arrive at net cash provided by operating activities.
• B) a deduction from net income of $5,000 in order to arrive at net cash provided by operating activities.
• C) an addition to net income of $15,000 in order to arrive at net cash provided by operating activities.
• D) a deduction from net income of $10,000 in order to arrive at net cash provided by operating activities.

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Definitions:

Broken Line

A line that is not continuous but consists of a series of dashes, often used in drawings to represent hidden, unseen, or imaginary boundaries or features.

Partial View

A drawing or representation focusing on a specific section or portion of an object, omitting the rest for clarity or simplicity.

Limited Portion

A segment or fraction of something that is restricted in size, amount, or extent.

Decimal Inch

Decimal inch is a measurement unit in the imperial system represented in decimal form, used for expressing precise dimensions in engineering and manufacturing.