Assume That the Balance of Accounts Payable Does Not Change

question 29

Multiple Choice

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

• A)the amount of cost of goods sold is equal to the amount of cash paid for purchases.
• B)consumed inventory is an expense but not a use of funds.
• C)the amount of cost of goods sold on an accrual basis is less than the amount of cash paid for purchases of inventory.
• D)the amount of cash paid for purchases of inventory is less than the amount of cost of goods sold on an accrual basis.

Differentiate between the types of cases heard in trial and appellate courts.

Comprehend the concept of venue in legal proceedings.

Recognize the roles of judge and jury in determining law and facts in a case.

Understand the principles of jurisdiction, including in personam and in rem jurisdiction.

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Definitions:

Finished Goods

Items that are finished being made but have not been purchased by consumers yet.

Job-Order Costing

An accounting method that assigns costs to specific production batches or jobs, suitable for firms producing distinct products or jobs.

Overapplied Overhead

A scenario in which the overhead costs assigned are greater than the overhead costs that were actually incurred.

Manufacturing Overhead

All manufacturing costs that are not directly associated with the direct labor or direct materials used in production.