During the Year the Balance in the Inventory Account Increased

question 16

Multiple Choice

During the year the balance in the Inventory account increased by $4,000.In order to adjust the company's net income to a cash basis using the direct method on the statement of cash flows,it would be necessary to:

• A)subtract the $4,000 from the sales revenue reported on the income statement.
• B)add the $4,000 to the sales revenue reported on the income statement.
• C)subtract the $4,000 from the cost of goods sold reported on the income statement.
• D)add the $4,000 to the cost of goods sold reported on the income statement.

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Definitions:

Pollution Controls

Measures and technologies implemented to reduce or eliminate the emission of pollutants into the environment.

Respiratory Illnesses

Diseases that affect the lungs and respiratory system, potentially impacting breathing and oxygenation of blood.

Nuisance Doctrine

a legal principle that allows individuals to seek relief from disturbances or interferences with the use and enjoyment of their property.

Air-quality Standard

Regulations and guidelines intended to maintain or improve the quality of the air in outdoor or indoor spaces.