What if inventory decreases


Question: On the statement of cash flows, if inventory decreases: Select one: a. it is a source of cash, since the firm is selling inventory b. it is a source of cash, since the firm is buying inventory that it can resell for cash c. it is a use of cash, since the firm is selling inventory it purchased with cash d. it is a use of cash, since the firm is buying inventory and using cash

 

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Accounting Basics: What if inventory decreases
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