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 $15,000 will be subtracted from net income.
• B)The decrease of $15,000 will be added to net income.
• C)The decrease of $15,000 will be subtracted from cost of goods sold to determine payments to suppliers.
• D)The decrease of $15,000 will be added to cost of goods sold to determine payments to suppliers.

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Definitions:

Active Listening

A communication technique that requires the listener to fully concentrate, understand, respond, and then remember what is being said.

Nonverbal Cues

Forms of communication without words, such as gestures, facial expressions, and body language, which can convey messages or emotions.

Communication Styles

Varied manners and approaches with which individuals express themselves and interact with others.

Jargon

Specialized terminology used within a specific profession, industry, or group, often difficult for outsiders to understand.