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. a deduction from net income of $10,000 in order to arrive at net cash provided by operating activities.
B. an addition to net income of $15,000 in order to arrive at net cash provided by operating activities.
C. a deduction from net income of $5,000 in order to arrive at net cash provided by operating activities.
D. an addition to net income of $5,000 in order to arrive at net cash provided by operating activities.
Answer: C
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Occasionally, companies engage in important investing and financing activities which do not affect cash. If the amount of the transaction is significant, how should it be disclosed when financial statements are prepared?
a. In the investing section if the amount of investing activities are greater than the financing activities amount. b. In the financing section if the amount of financing activities are greater than the investing activities amount. c. In a note to the financial statements or in a supplemental schedule. d. The transaction does not need to be disclosed.
Employee compensation payments added to base salaries because of higher expenses encountered when living abroad are considered ________.
Fill in the blank(s) with the appropriate word(s).
The United Nations Framework Convention on Climate Change (UNFCCC) was adopted at the Stockholm Declaration
Indicate whether the statement is true or false
If local Shell gasoline stations look at BP stations' prices as the primary method of determining its own prices, Shell is using ________
A. price fixing, which considers competition to be less important than costs. B. price fixing, which considers costs to be less important than competitor's prices. C. market share pricing, which considers competition to be the ultimate pricing goal. D. competition-based pricing, which considers profit to be the ultimate pricing goal. E. competition-based pricing, which considers costs to be less important than competitor's prices.