The Following Information Was Taken from the Operating Activities Category

question 162

Multiple Choice

The following information was taken from the Operating Activities category of the 2017 statement of cash flows for Limited Corp.: ?
$\begin{array}{lr}\text { Additions to net income: Change in accounts payable } & \$ 2,000 \\\text { Deductions from net income: Change in inventories } & 8,000\end{array}$
Based on the information provided,which of the following conclusions is correct?

• A)Accounts payable decreased by $2,000 in 2017.
• B)Inventories increased by $8,000 in 2017.
• C)The direct method was used to prepare the Operating Activities of the statement of cash flows.
• D)Cash payments of merchandise exceeded cost of goods sold by $2,000.

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Definitions:

Job Rotation

involves periodically moving employees to different tasks or roles within an organization to promote skill development and reduce monotony.

Job Enlargement

The process of increasing the range and variety of tasks assigned to a job to enhance job satisfaction and employee engagement.

Clustering Jobs

The practice of grouping similar or related occupational roles or positions within an organization to improve efficiency and effectiveness.

Natural Groups

Informal groups that form organically based on social interactions, common interests, or shared values among members.