An increase in inventory balance would be reported in a statement of cash flows using the indirect method (reconciliation method) as a(n)

An increase in inventory balance would be reported in a statement of cash flows using the indirect method (reconciliation method) as a(n)



a. addition to net income in arriving at net cash flow from operating activities.
b. deduction from net income in arriving at net cash flow from operating activities.
c. cash outflow from investing activities.
d. cash outflow from financing activities.







Answer: B


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Accounting Chapter 23

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