Assume the direct method is used to compute net cash flows from operating activities. For this item extracted from the financial statements-Decrease in Inventory-indicate the effect on cash payments for purchases by choosing one of the following:
A) Add to Cost of Goods Sold to compute cash payments for purchases.
B) Subtract from Cost of Goods Sold to compute cash payments for purchases.
C) Not used to adjust Cost of Goods Sold to compute cash payments for purchases.
B
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Which of the following ensures that managers are rewarded only when a company performs better than its competitors?
A. A constant strike price for executive stock options B. A strike price that increases with time C. A strike price that changes in line with an index of stock prices D. A strike price that is tied to reported profit
Arrange the following five bond funds in order from the lowest return and risk to the highest: long-term global, short-term Treasury, intermediate-term corporate, long-term high-yield, long-term Ginnie Mae
What will be an ideal response?