In a Statement of Cash Flows (Indirect Method),an Increase in Inventories

question 78

Multiple Choice

In a statement of cash flows (indirect method) ,an increase in inventories should be presented as

• A) a deduction from net income from continuing operations.
• B) an inflow and outflow of cash.
• C) an addition to net income.
• D) an inflow of cash.

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Definitions:

Theory X

A management concept that assumes employees are inherently lazy and will avoid work if they can, suggesting the need for strict supervision and control.

Self-direction

The ability to set a course or take action independently, often related to personal or professional goal setting and achievement.

Theory Y

Theory Y is a management style that assumes employees are inherently motivated and enthusiastic about their work, promoting a participative decision-making process.

Zero Defects

A management philosophy aimed at eliminating defects in products or processes through continuous improvement and defect prevention measures.