Use the Table for the Question(s)below

question 29

Multiple Choice

Use the table for the question(s) below.
AOS Industries Statement of Cash Flows for 2008
-Consider the above statement of cash flows.Which of the following is true of AOS Industries' operating cash flows?

• A)It collected more cash from its customers than they charged.
• B)It sold more inventory than it bought.
• C)It charged more on its accounts payable back than it paid back.
• D)All of the above are true.

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Definitions:

Cost Of Goods Sold

The direct costs attributable to the production of goods sold by a company, including materials, labor, and overhead.

Lower Of Cost

The accounting principle that dictates inventory items are recorded at the lower of either their cost or market value if the market value is less.

Net Realizable Value

The estimated selling price of goods minus the cost of their sale or disposal, often used to evaluate inventory or accounts receivable.

Inventory Cost Methods

Inventory cost methods are accounting strategies for valuing inventory, such as FIFO (First In, First Out), LIFO (Last In, First Out), and average cost method.