When Preparing the Statement of Cash Flows Using the Indirect

question 78

Multiple Choice

When preparing the statement of cash flows using the indirect method,an increase in inventories would appear as:

• A) a decrease in the operating activities section
• B) an increase in the operating activities section
• C) a use of cash in the investing activities section
• D) a source of cash in the investing activities section

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Definitions:

Cardiac Muscle

A specialized type of muscle found only in the heart, responsible for pumping blood throughout the body.

Skeletal Muscle

A type of muscle tissue that is attached to bones and responsible for voluntary movements of the body.

Uninucleated

Having only one nucleus per cell, characteristic of most human cells except for certain muscle cells and some fungi.

Striated

Having a striped appearance, often referring to skeletal muscle tissue characterized by cross-stripes.