The Net Income Reported on the Income Statement for the Current

question 28

Multiple Choice

The net income reported on the income statement for the current year was $635,000.Depreciation recorded on plant assets was $29,000.Accounts receivable and inventories increased by $1,200 and $3,600, respectively.Prepaid expenses and accounts payable decreased by $800 and $16,000 respectively.How much cash was provided by operating activities?

• A) $642,400
• B) $644,000
• C) $652,000
• D) $685,600

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Definitions:

Delay of Gratification

The voluntary postponement of an immediate reward in anticipation of a later, potentially more valued reward.

Role Confusion

A situation in which an individual lacks clarity about the expectations of their role within a particular context, leading to uncertainty and conflict.

Erikson

Refers to Erik Erikson, a developmental psychologist known for his theory on the psychosocial development of human beings.

Intuitionist

A person who believes in or advocates for intuitionism, the theory that moral truths are known by intuition.