A Company Uses the Direct Method to Prepare the Statement

question 161

Multiple Choice

A company uses the direct method to prepare the statement of cash flows.It presents the following data on its financial statements:

*Relates solely to the acquisition of inventory
What will appear in the operating activities section related to inventory?

• A)The decrease of $18,000 will be subtracted from net income.
• B)The decrease of $18,000 will be added to net income.
• C)The decrease of $18,000 will be subtracted from cost of goods sold to determine payments to suppliers.
• D)The decrease of $18,000 will be added to cost of goods sold to determine payments to suppliers.

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Definitions:

Seventh and Eighth Decades

Refers to the age periods of 60-69 years (seventh decade) and 70-79 years (eighth decade), often discussed in the context of aging and lifespan development.

Culturally Specific

Indicates something that is unique or particular to a certain culture or society, including traditions, norms, and practices.

Self-injury

The deliberate harm of one's own body without suicidal intent, often as a coping mechanism for emotional distress.

Grief and Loss

The emotional suffering and mourning after losing someone or something important.