The Following Information Was Taken from the 2011 Financial Statements

question 45

Multiple Choice

The following information was taken from the 2011 financial statements of Winchester Corporation:

No accounts receivable were written off or recovered during the year. If Winchester prepares a statement of cash flows using the direct method, what amount should be reported as collected from customers in 2011?

• A) $2,239,000
• B) $2,234,000
• C) $2,146,000
• D) $2,141,000

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Definitions:

Volume

The amount of space that a substance or object occupies, or that is enclosed within a container.

Price

The amount of money expected, required, or given in payment for something; it reflects the value at which a transaction can occur.

Dioxins

Highly toxic chemical compounds that are environmental pollutants and known for their ability to persist in the environment and accumulate in the food chain.

Parts Per Million

A unit of measurement used to denote the concentration of a substance in water or air, equal to 1 part of the substance in 1,000,000 parts of the solvent.