Under the Indirect Method,a Decrease in Inventory Is Subtracted from Net

question 19

True/False

Under the indirect method,a decrease in inventory is subtracted from net income because inventory purchases are less than cost of goods sold.

Recognize the dependence of various management functions on planning.

Differentiate between operational and strategic plans.

Identify the characteristics and purpose of strategic planning.

Understand the roles and attributes of rules, procedures, and policies within an organization.

---

Definitions:

Myopic

Nearsightedness; a condition in which close objects appear clearly but distant ones don't.

Nearsighted

A vision condition, also known as myopia, where close objects appear clear but distant ones are blurry.

Stimulus

A change in the environment that elicits a response from an organism or a system.

Alteration

A change or modification, usually used to refer to a small change in structure, form, or quality.