In Its Accrual Basis Income Statement for the Year Ended

question 6

Multiple Choice

In its accrual basis income statement for the year ended December 31, 2011, Nelson Company reported revenue of $3,500,000. Additional information is as follows:

Nelson should report cash collected from customers in its 2011 statement of cash flows (direct method) in the amount of

• A) $3,240,000.
• B) $3,100,000.
• C) $3,380,000.
• D) $3,760,000.

---

Definitions:

X-axis

The horizontal line on a graph that represents the independent variable.

Vertical

An orientation or direction that goes straight up and down, perpendicular to the horizon.

Gini Coefficient

A gauge for comparing income distribution within a group, starting at 0 for utter equity and peaking at 1 for maximal inequity.

Inequality

Refers to the uneven distribution of resources or opportunities among different groups or individuals within a society.