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:

Bathing Dog

The process of cleaning a dog's coat and skin with water and dog shampoo to maintain their hygiene and health.

Fixed-interval

A type of schedule of reinforcement where the first response is rewarded only after a specified amount of time has elapsed, resulting in a slow response rate just after reinforcement and a faster rate as the time for the next reinforcement approaches.

Variable-interval

A schedule of reinforcement where a response is rewarded after an unpredictable amount of time has passed.

Variable-ratio

A schedule of reinforcement where a response is rewarded after an unpredictable number of responses, commonly used in behavior modification techniques.