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:

Accountant Liability

Accountant liability refers to the legal accountability of accountants to their clients and third parties for negligence, misconduct, or failure to follow professional standards.

Fraud

Willful misrepresentation aimed at obtaining an illicit or unearned gain, or to strip someone of their rightful legal privileges.

Negligence

A failure to behave with the level of care that someone of ordinary prudence would have exercised under the same circumstances, resulting in harm or damage.

Defenses

Legal strategies and arguments used in court to justify or excuse an individual's actions or to challenge the validity of a lawsuit.