When preparing a reconciliation of net income to cash from operations, an increase in the ending inventory over the beginning inventory will result in an adjustment to reported net income because
a. cash is increased because inventory is a current asset.
b. inventory is an expense deducted in computing net earnings, but is not a use of cash.
c. the net increase in inventory is part of the difference between cost of goods sold and cash paid to suppliers.
d. all changes in noncash accounts must be disclosed.
C
You might also like to view...
A firm incurs $400 to manufacture a television. In the market, customers are willing to pay a maximum of $600 for the television priced at $500. The difference of $200 ($600 minus $400) is the
A. customer lifetime value. B. total return to shareholders. C. consumer surplus. D. economic value created.
Which of the following is not an example of a monitoring study?
A. Telephone interview B. Documenting interactions between customers and a call center C. Counting traffic at an intersection D. Recording license plates in a parking lot E. Mystery shopping in a competitor's store
Which of the follow BEST defines those who assume the risk of business ownership?
A) Entrepreneurs B) Customers C) Corporate partners D) The Small Business Administration E) Banks
In Microsoft Excel, the ________ chart is similar to the pie chart but can contain more than one data series
A) stock B) surface C) doughnut D) bubble