Question: In a statement of cash flows ( indirect method ) , a decrease in inventory shoulc A be reported as a deduction from net income

In a statement of cash flows (indirect method), a decrease in inventory shoulc
A be reported as a deduction from net income in determining cash flows from operating activiti
B be reported as an addition to net income in determining cash flows from operating activities
be reported as an investing activity
D not be reported at all
In a statement of cash flows ( indirect method )

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

usiness Finance - Interest and Dividends In a statement of cash flows ( indirect method ) , a decrease in inventory should A be reported as a deduction from net income in determining cash flows from...

Q:

49. In a statement of cash flows (indirect method), a decrease in inventory should be reported as: O An addition to net income in determining cash flows from operating activities. O Not reported. O...

Q:

In a statement of cash flows ( indirect method ) , a decrease in inventory should be reported as:Multiple ChoiceA deduction from net income in determining cash flows from operating activities.Not...

Q:

In a statement of cash flows (indirect method), depreciation is treated as an adjustment to reported net income because depreciation is an inflow of cash to a reserve account for asset replacement...

Q:

Business Finance - Interest and Dividends In a statement of cash flows ( indirect method ) , a decrease in invertery should A be reported as a deduction from net income in determining canh flows from...

Q:

13. To arrive at net cash provided by operating activities, it is necessary to report revenues and expenses on a cash basis. This is done by A) re-recording all income statement transactions that...

Q:

An analysis of comparative balance sheets, the current years income statement, and the general ledger accounts of Guillen Corp. uncovered the following items. Assume all items involve cash unless...

Q:

An analysis of comparative balance sheets, the current year's income statement, and the general ledger accounts of Guillen Corp. uncovered the following items. Assume all items involve cash unless...

Q:

An analysis of comparative balance sheets, the current years income statement, and the general ledger accounts of Guillen Corp. uncovered the following items. Assume all items involve cash unless...

Q:

Indicate where each item should be reported in the statement of cash flows (indirect method), using these categories: (1) operating activity (added to net income), (2) operating activity (deducted...

Q:

1. Why does "human action" imply the existence of "time"? a. Because we cannot think about action without assuming that it takes place in time b. Because human beings are imperfect c. Because human...

Q:

Suppose there are only two automobile companies, Ford and Chevrolet. Ford believes that Chevrolet will match any price it sets, but Chevrolet too is interested in maximizing profit. Use the following...

Q:

heck Register Evaluation VendorCheck #AmountDescriptionAdjustment Needed?Amount to AdjustWater World Distributors 1 3 3 3 $ 3 , 5 0 0 Delivered 1 2 / 3 1 / Y 2 Yes$ 3 , 5 0 0 Daniel Breen, Esquire 1...

Q:

Hugo decides to buy his Christmas gifts on Black Friday. To simplify his life, he is giving his 10 closest friends scarves for Christmas and everyone else Christmas cards. Hugo is willing to pay up...