1. Goods Available for Sale minus Ending Inventory Equals
   1. Ending Inventory B) Cost of Goods Sold

C) Goods Available for Sale D) Sales

2. The sale of a good or service is classified in the statement of cash flows as a(n):
   1. Noncash activity. B) Financing activity.

C) Operating activity. D) Investing activity.

3. When we sign an Executory Contract, generally
   1. Expenses Increase
   2. Liabilities Increase
   3. No change to the Balance Sheet and no change to the Income Statement
   4. Assets increase

4. Which type of inventory is in a factory (more than one possible correct answer)?
   1. Finished Goods
   2. Direct Labor
   3. Overhead
   4. Raw Materials
   5. Work in Process

5. Suppose that ABC overstates its ending inventory for 2018. What effect will this have on the reported amount of cost of goods sold for 2018?
   1. Cannot be determined given the information provided.
   2. Have no effect on cost of goods sold.
   3. Understate cost of goods sold.
   4. Overstate cost of goods sold.