Assume That a Statement of Cash Flows Reports Increases and Decreases

question 40

Multiple Choice

Assume that a statement of cash flows reports increases and decreases in current asset accounts. Which of the following is true?

• A)Increases and decreases in current assets are not reported on the statement of cash flows.
• B)Increases and decreases in current assets are reported when using both the direct and indirect methods.
• C)The statement was prepared using the direct method.
• D)The statement was prepared using the indirect method.

Distinguish between primary and support activities in the value chain.

Recognize the strategic significance of operations within the value chain.

Understand how firms can create competitive advantages through the value chain.

Recognize the purpose and process of conducting a value chain analysis.