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Operating Activities: Direct Method
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Problem 1
Problem 2
Problem 3
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Problem 7
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Problem 9
Operating Activities: Direct Method
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13. Statement of Cash Flows / Operating Activities: Direct Method / Problem 3
Problem 3
Why is it necessary to use both inventory and accounts payable T accounts to determine cash paid to suppliers?
A
Because they provide information on sales and collections.
B
Because they calculate net income.
C
Because they record cash inflows from customers.
D
Because they track purchases and payments, which are essential for calculating cash outflows.
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