An increase in the Inventory account from $10,000 at the beginning of the year to $15,000 at the end of the year would be shown on the statement of cash flows prepared under the indirect method as:

A. an addition to net income of $15,000 in order to arrive at net cash provided by operating activities.
B. an addition to net income of $5,000 in order to arrive at net cash provided by operating activities.
C. a deduction from net income of $10,000 in order to arrive at net cash provided by operating activities.
D. a deduction from net income of $5,000 in order to arrive at net cash provided by operating activities.


Answer: D

Business

You might also like to view...

The sale of shares in a corporation by one stockholder to another affects the total capital of the corporation

Indicate whether the statement is true or false

Business

What is the intent of the International Bill of Human Rights?

a. To increase social awareness of the treatment of human beings b. To ban discrimination and assure equal employment opportunities to people regardless of their gender, race, ethnicity, age, disability c. To raise the status of minority groups and help them transition into the majority d. To correct a history of past wrongs so that everyone can coexist peacefully in a fairer society

Business

Identify and describe the phases included in the Scrum development process.

Fill in the blank(s) with the appropriate word(s).

Business

Company objectives should lead to a hierarchy of marketing objectives.

Answer the following statement true (T) or false (F)

Business