Management Has Authorized the Purchase of a Large Quantity of Inventory

question 111

Multiple Choice

Management has authorized the purchase of a large quantity of inventory for early December.The purchase will have credit terms of 2/10,n/30,they will authorize payment by the discount date.How will this decision affect the period's cash flows from operations-indirect method?

• A)It will increase this period's cash flows from operations.
• B)It will decrease this period's cash flows from operations.
• C)It will not affect this period's cash flows from operations.
• D)This does not affect cash flows from operations.

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