In a Company That Uses the Direct Method to Prepare

question 141

Multiple Choice

In a company that uses the direct method to prepare the statement of cash flows, the amount of cash it uses to purchase inventory is computed as

• A)cost of goods sold plus ending inventory.
• B)cost of goods sold plus ending inventory, plus beginning inventory.
• C)beginning inventory minus ending inventory, minus cost of goods sold.
• D)cost of goods sold plus ending inventory, minus beginning inventory.

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Definitions:

Values

The principles or standards of behavior that are regarded as important and desirable in life by an individual or society.

Conscientiousness

A personality trait characterized by diligence, carefulness, and a desire to do a task well.

Big Five

A model describing human personality through five broad dimensions: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Personality Traits

Enduring characteristics that describe an individual's behavior.