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.

---

Definitions:

Inductive Reasoning

A reasoning method where several assumptions, considered true or frequently accurate, are merged to reach a particular outcome.

Type 2 Diabetes

A chronic condition characterized by insulin resistance or deficiency, leading to high blood sugar levels, often associated with obesity and lifestyle factors.

Overweight

A condition characterized by having more body fat than is optimally healthy, often defined by a Body Mass Index (BMI) over the normative range.

Alarming Rate

A speed of occurrence or development of an event or condition that causes concern or fear due to its potential negative impact.