A Company Uses the Indirect Method to Prepare the Statement

question 121

Multiple Choice

A company uses the indirect 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 $18,000will be subtracted from cost of goods sold.
• C)The decrease of $18,000 will be added to net income.
• D)The decrease of $18,000 will be added to cost of goods sold.

Comprehend the benefits and applications of different training delivery methods including technology-enhanced learning.

Recognize the diverse needs of different employee groups and tailor training methods accordingly.

Evaluate the effectiveness and efficiency of training programs.

Understand the importance and structure of onboarding and orientation programs.

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Definitions:

Parent's Cash Flows

The cash inflows and outflows directly associated with the primary operating entity in a group of companies or conglomerate.

AASB 121

Refers to the Australian Accounting Standards Board provision dealing with the effects of changes in foreign exchange rates.

Exchange Differences

Variance arising from translating foreign currency transactions or foreign operations into the reporting currency.

Presentation Currency

The form of money used to express the financial records of a company.