The following information was taken from the operating activity section of the 2014 statement of cash flows for Limited Corp: 
Based on the information provided, which one of the following conclusions is correct?
A) Accounts payable decreased $2,000 in 2014.
B) Inventories increased $8,000 in 2014.
C) The direct method was used to prepare the operating section of the cash flow statement.
D) Cash payments of merchandise exceeded cost of goods sold by $2,000.
Correct Answer:
Verified
Q3: If cost of goods sold does not
Q6: Gross margin as a percentage of sales
Q15: On the income statement of a merchandising
Q16: Like sales revenue,cost of goods sold represents
Q17: If a customer returns merchandise which has
Q20: The three forms or states in the
Q103: Cost of goods sold is equal to
Q108: Adam Inc. uses a perpetual inventory system.
Q109: Adam Inc. uses a perpetual inventory system.
Q110: Payment for the acquisition of inventories is
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents