The following information was taken from the Operating Activities category of the 2017 statement of cash flows for Limited Corp.: ?
$\begin{array}{lr}
\text { Additions to net income: Change in accounts payable } & \$ 2,000 \
\text { Deductions from net income: Change in inventories } & 8,000
\end{array}$
Based on the information provided,which of the following conclusions is correct?
A)Accounts payable decreased by $2,000 in 2017.
B)Inventories increased by $8,000 in 2017.
C)The direct method was used to prepare the Operating Activities of the statement of cash flows.
D)Cash payments of merchandise exceeded cost of goods sold by $2,000.

Question

The following information was taken from the Operating Activities category of the 2017 statement of cash flows for Limited Corp.: ?
$\begin{array}{lr}
\text { Additions to net income: Change in accounts payable } & \$ 2,000 \
\text { Deductions from net income: Change in inventories } & 8,000
\end{array}$
 Based on the information provided,which of the following conclusions is correct?
A)Accounts payable decreased by $2,000 in 2017.
B)Inventories increased by $8,000 in 2017.
C)The direct method was used to prepare the Operating Activities of the statement of cash flows.
D)Cash payments of merchandise exceeded cost of goods sold by $2,000.

Quizplus · Accepted Answer

The Answer of The following information was taken from the Operating Activities category of the 2017 statement of cash flows for Limited Corp.: ?
$\begin{array}{lr}
\text { Additions to net income: Change in accounts payable } & \$ 2,000 \
\text { Deductions from net income: Change in inventories } & 8,000
\end{array}$
 Based on the information provided,which of the following conclusions is correct?
A)Accounts payable decreased by $2,000 in 2017.
B)Inventories increased by $8,000 in 2017.
C)The direct method was used to prepare the Operating Activities of the statement of cash flows.
D)Cash payments of merchandise exceeded cost of goods sold by $2,000.

The Following Information Was Taken from the Operating Activities Category