Question: When preparing a statement of cash flows ( indirect method ) , an increase in ending inventory over beginning inventory will result in an adjustment
When preparing a statement of cash flows indirect method an increase in ending inventory over beginning inventory will result in an adjustment to reported net earnings because
inventory purchased during the period was less fthan inventory sold resulting in a net cash increase.
acquisition of inventory is an investment activity.
cost of goods sold on an accrual basis is lower than on a cash basis.
cash was increased while cost of goods sold was decreased.
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