Black Corporation Entered into the Following Transactions: • the Accrual

question 74

Multiple Choice

Black Corporation entered into the following transactions: • The accrual of wages and salaries expense.
• The cash sale of equipment for a loss.
• The cash payment in advance for a one-year insurance policy.
Which of the following statements is correct with respect to determining Black's cash flows from operating activities on the statement of cash flows?

• A)The accrual of wages and salaries expense resulted in a cash outflow.
• B)The purchase of a one-year insurance policy resulted in a cash inflow.
• C)The cash sale of equipment for a loss resulted in a cash inflow.
• D)The accrual of wages and the equipment loss both resulted in cash outflows.

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Definitions:

Great Minneapolis Surplus Store

A widely cited legal case involving offer and acceptance in contract law.

Valid Offer

An expression of willingness to enter into a contract on specified terms, made with the intention that it will become binding as soon as it is accepted by the person to whom it is addressed.

Invitation

A formal or polite request to attend an event or participate in something.

Propaganda Model

The assertion that media companies, as businesses, will transmit content that reflects their commercial interests.