When Preparing a Reconciliation of Net Income to Cash from Operations,an

Multiple Choice

When preparing a reconciliation of net income to cash from operations,an increase in the ending inventory over the beginning inventory will result in an adjustment to reported net income because

A) cash is increased because inventory is a current asset.
B) inventory is an expense deducted in computing net earnings,but is not a use of cash.
C) the net increase in inventory is part of the difference between cost of goods sold and cash paid to suppliers.
D) all changes in noncash accounts must be disclosed.