When using the indirect method to complete the cash flows from operating activities section, what is the proper treatment for an increase in the Inventory account?
A. Add the increase to cash collections from customers
B. Deduct the increase from net income
C. Add the increase to net income
D. Deduct the increase to cash payments to suppliers
Answer: B
You might also like to view...
You are about to test a theory about decreasing sales in certain markets and their causes. You are involved in what type of research?
A) exploratory B) descriptive C) explanatory D) focus group E) ethnographic
If the combined market value of trading securities at the end of the year is less than the market value of the same portfolio of trading securities at the beginning of the year, the difference should be accounted for by
a. a credit to Investment in Trading Securities. b. reporting an unrealized loss in security investments in the stockholders' equity section of the balance sheet. c. a footnote to the financial statements. d. reporting an unrealized loss in security investments in the income statement.
A sales proposal ________
A) is used exclusively as a persuasive tool B) cannot serve as a sales contract C) represents a commitment between both parties when signed by a client D) is always an unsolicited proposal E) should not mention the details of the schedule and budget
Ragged Edge Arts uses a just-in-time (JIT) manufacturing environment. For the month of October, Ragged Edge Arts has completed $2,400 of quilts and paintings. The journal entry required to record the transfer to finished goods is ________
a. Raw and In Process Inventory 2,400 Accounts Payable 2,400 b. Finished Goods Inventory 2,400 Cost of Goods Sold 2,400 c. Finished Goods Inventory 2,400 Raw Materials Inventory 2,400 d. Finished Goods Inventory 2,400 Raw and In Process Inventory 2,400