An Increase in the Inventory Account of a Company from $10,000

question 78

Multiple Choice

An increase in the Inventory account of a company from $10,000 at the beginning of the year to $15,000 at the end of the year would be shown on the company's statement of cash flows prepared under the indirect method as:

• A)an addition to net income of $5,000 in order to arrive at net cash provided by operating activities.
• B)a deduction from net income of $5,000 in order to arrive at net cash provided by operating activities.
• C)an addition to net income of $15,000 in order to arrive at net cash provided by operating activities.
• D)a deduction from net income of $10,000 in order to arrive at net cash provided by operating activities.

---

Definitions:

Vastus Lateralis

A muscle in the thigh that is part of the quadriceps group, it extends the leg at the knee joint.

Needle Safety

Needle safety refers to practices aimed at reducing the risk of injury and transmission of pathogens when using needles in medical settings.

Syringe

A medical instrument used to inject fluids into or withdraw them from the body.

Tuberculin Skin Test

A diagnostic tool for tuberculosis where a small amount of tuberculin is injected under the skin, and the reaction is measured to determine exposure to TB bacteria.