When Preparing a Reconciliation of Net Income to Cash from Operations

question 43

Multiple Choice

When preparing a reconciliation of net income to cash from operations, an increase in the ending inventory over the beginning inventory will result in an adjustment to reported net income because:

• A) Cash is increased because inventory is a current asset.
• B) Inventory is an expense deducted in computing net earnings, but is not a use of cash.
• C) The net increase in inventory is part of the difference between cost of goods sold and cash paid to suppliers.
• D) All changes in noncash accounts must be disclosed.

Understand the concept of accounting and cash break-even points.

Grasp the essentials of conducting scenario and sensitivity analysis.

Comprehend the determination of sales levels based on financial metrics.

Recognize the impact of fixed and variable costs on a project's profitability.

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Definitions:

Workforce Planning

The systematic process for identifying and addressing the gaps between the workforce of today and the human capital needs of tomorrow.

Labour Market Data

It encompasses statistical information related to employment, unemployment, wages, and workforce characteristics in a specific region or industry.

External Human Capital

The skills, knowledge, and abilities present in individuals outside an organization that can be brought in through hiring or collaboration.

Integrative IHRM Approach

A comprehensive strategy in international human resource management that combines multiple aspects and practices to manage global workforce effectively.