The Following Information Is Available from the Current Period Financial

question 44

Multiple Choice

The following information is available from the current period financial statements: The net cash flow from operating activities using the indirect method is

• A) $230,000
• B) $188,000
• C) $198,000
• D) $156,000

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Definitions:

Cost Of Goods Available

The total cost of inventory available for sale during a period, calculated as beginning inventory plus purchases minus ending inventory.

Periodic Inventory System

An accounting method where inventory is physically counted at specific intervals to determine the level of inventory and cost of goods sold.

Perpetual Inventory System

An inventory accounting system that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

Statement Of Financial Position

A balance sheet is a financial statement that outlines a company's equity, liabilities, and assets at a certain date.