In Preparing a Company's Statement of Cash Flows for the Most

question 148

Multiple Choice

In preparing a company's statement of cash flows for the most recent year,Ransom Corp.reported the following information: Net cash flows from financing activities for the year were:

• A)$230,000 of net cash used.
• B)$230,000 of net cash provided.
• C)$108,000 of net cash used.
• D)$138,000 of net cash used.
• E)$138,000 of net cash provideD.

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Definitions:

Covariation Principle

A theory suggesting that people attribute behavior to causes that appear at the same time as the behavior and are absent when the behavior does not occur.

Attributions

The process by which individuals explain the causes of behavior and events, either their own or others'.

Heuristics

A strategy for making judgments quickly, at the price of occasional mistakes.

Dissonance Theory

A psychological theory suggesting that inconsistency among beliefs, attitudes, and behaviors causes discomfort, leading individuals to seek coherence.