Utah CorpUses the Indirect Method to Prepare the Statement of Cash

question 103

Multiple Choice

Utah Corp.uses the indirect method to prepare the statement of cash flows.Refer to the following section of the comparative balance sheet:

How will the change in Merchandise Inventory be shown on the statement of cash flows?

• A)addition to net income under the operating activities section
• B)subtraction from net income under the operating activities section
• C)positive cash flow under the financing activities section
• D)negative cash flow under the investing activities section

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Definitions:

Quantified

The process of measuring or expressing something as a numerical value, allowing for precise analysis and comparison.

Social Psychological Theories

Frameworks within social psychology that explain how social influences, perceptions, and interactions impact individual behaviors and attitudes.

Inferring

The process of drawing conclusions from evidence and reasoning rather than from explicit statements.

Modifying

The process of making changes or alterations, typically to improve functionality or performance.