For Each of the Following Items, Indicate by Using the Appropriate

question 3

Multiple Choice

For each of the following items, indicate by using the appropriate code letter, how the item should be reported in the statement of cash flows, using the indirect method.
-Increase in merchandise inventory during a period.

• A)Added to net income
• B)Deducted from net income
• C)Cash outflow--investing activity
• D)Cash inflow--investing activity
• E)Cash outflow--financing activity
• F)Cash inflow--financing activity
• G)significant noncash investing and financing activity

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Definitions:

Upper Echelon Theory

A theory suggesting that an organization's outcomes are influenced by the personal backgrounds and characteristics of its top executives.

Organizational Characteristics

Traits or attributes that define the nature of an organization, including its size, structure, processes, culture, and goals.

Background Characteristics

Fundamental attributes or experiences of individuals, such as age, education, or cultural background, that contribute to their identity.

Social Loafing

The phenomenon where individuals in a group contribute less effort to a task than they would when working alone.