Cash Paid to Suppliers Under the Direct Method Is Computed

question 118

Multiple Choice

Cash paid to suppliers under the direct method is computed as:

• A) Cost of goods sold plus a decrease in inventory and minus an increase in accounts payable.
• B) Cost of goods sold plus an increase in inventory and minus an increase in accounts payable.
• C) Cost of goods sold minus a decrease in inventory and plus an increase in accounts payable.
• D) Cost of goods sold minus an increase in inventory and plus an increase in accounts payable.

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Definitions:

Qualitative Forecasting Methods

Forecasting techniques based on expert judgments and not on numerical data, often used for market trends.

Time Series Forecasting Methods

Statistical techniques used to predict future values based on previously observed values over time, often applied in finance, weather forecasting, and inventory management.

Simplicity

The quality of being easily understood or executed without complexity.

Starting Point

The initial position, condition, or phase from which a process, project, or calculation begins.