Use the Following Codes to Indicate How the Cash Flow

question 132

Multiple Choice

Use the following codes to indicate how the cash flow effect, if any, of each transaction or event would be reported on a statement of cash flows if the operating activities section is prepared using the indirect method. (Choices may be used more than once.)
-increased the inventory balance

• A)operating activity-add to net income
• B)operating activity-deduct from net income
• C)inflow from investing activity
• D)outflow from investing activity
• E)inflow from financing activity
• F)outflow from financing activity
• G)noncash investing and financing activity
• H)not reported on statement of cash flows

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Definitions:

Minimum Wage

The lowest legally allowable pay per hour for workers, set by government policy.

Market Equilibrium

A market state where the supply of goods matches demand, leading to stable prices.

Unskilled Labor

Workers who lack specialized training or qualifications, often performing manual or simple tasks.

Surplus

The amount by which the quantity supplied of a commodity exceeds the quantity demanded at a specific price.