Utah CorpUses the Indirect Method to Prepare the Statement of Cash

question 120

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:

Dormant Stage

A period during which an organism, seed, or entity is metabolically inactive or not showing visible growth, awaiting favorable conditions for activity.

Damaged Image

A situation where an entity's public perception has been negatively altered due to certain events or actions, leading to a decline in reputation.

Anticipating Customer

Anticipating customer needs involves understanding and predicting the future needs and preferences of customers to tailor products, services, and experiences that meet those needs before they have been explicitly expressed.

Quality Control

The process of ensuring that products and services meet certain standards of quality to satisfy customer expectations.