The net cash provided by operating activities is affected by:
A)the issue of bonds payable for cash.
B)a purchase of land for cash.
C)a change in merchandise inventory.
D)proceeds of cash investments by stockholders.

Question

Quizplus · Accepted Answer

A change in merchandise inventory impacts the net cash provided by operating activities through the calculation of cost of goods sold and the resulting change in cash flows from operating activities. The other options - issuing bonds payable, purchasing land, and receiving proceeds from cash investments by stockholders - are all related to financing or investing activities and do not directly impact operating activities.

The Net Cash Provided by Operating Activities Is Affected By