Which of the Following Statements Is CORRECT

question 3

Multiple Choice

Which of the following statements is CORRECT?

• A) in the statement of cash flows, a decrease in accounts receivable is reported as a use of cash.
• B) dividends do not show up in the statement of cash flows because dividends are considered to be a financing activity, not an operating activity.
• C) in the statement of cash flows, a decrease in accounts payable is reported as a use of cash.
• D) in the statement of cash flows, depreciation charges are reported as a use of cash.
• E) in the statement of cash flows, a decrease in inventories is reported as a use of cash.

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Definitions:

Narrow Product Line

A business strategy focusing on a limited selection of products or services to specialize and cater to a specific segment of the market.

Low-cost Strategy

A business approach aimed at gaining competitive advantage by offering products or services at lower prices than competitors.

Self-contained Units

Independent or autonomous components that function or operate separately within a larger system or structure.

Product Design

The process of conceiving and developing the features and functionality of products.