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Assume that the balance of accounts payable does not change during a period.When preparing a statement of cash flows,an increase in ending inventory over beginning inventory will result in an adjustment to cost of goods sold under the direct approach because
Ownership
The legal right to possess, use, control, and dispose of property, assets, or resources.
Seniority
The status obtained by an employee based on length of service or tenure, often affecting promotions, layoffs, and other job-related benefits.
Personal Property
Moveable property that is not fixed permanently to one location, such as furniture, vehicles, and electronic goods, as opposed to real estate.
Ownership Rights
Legal entitlements associated with possessing property, including the rights to use, rent, sell, or transfer it.
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