The Following Data Are for a Series of Increasingly Extensive

question 122

Multiple Choice

The following data are for a series of increasingly extensive flood control projects: For Plan D marginal costs and marginal benefits are:

• A)$72,000 and $64,000 respectively.
• B)$28,000 and $12,000 respectively.
• C)$24,000 and $18,000 respectively.
• D)$16,000 and $28,000 respectively.

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Definitions:

Operating Activities

Activities directly related to the operation of the business, including cash flows from operations, investing, and financial activities.

Direct Method

A cash flow statement preparation approach that shows the specific cash inflows and outflows associated with the operating activities.

Cash Received

The actual cash gathered by a company from its various activities, including sales, financing, or investing, during a particular period.

Noncash Investing

A financial activity that involves acquiring or disposing of assets without the immediate use of cash, such as through trading one asset for another or completing transactions through financing arrangements.