Which of the following statements is correct with respect to the determination of operating cash flows?
A)A decrease in inventory is deducted from net income.
B)An increase in accounts payable is deducted from net income.
C)An increase in inventory is deducted from net income.
D)A decrease in accounts payable is added to net income.

Question

Quizplus · Accepted Answer

An increase in inventory is deducted from net income because purchases exceed cost of goods sold.

Which of the Following Statements Is Correct with Respect to the Determination