In the Current Year, ABC Corporation Had the Following Items

question 30

Multiple Choice

In the current year, ABC Corporation had the following items of income, expense, gains, and losses: What is taxable income for the year?

• A) $150,000
• B) $135,000
• C) $141,000
• D) $144,000

---

Definitions:

Financing Activities

Activities that result in changes in the size and composition of the equity capital and borrowings of the entity.

Operating Activities

Activities that relate to the core business operations of a company, including revenue and expense transactions.

Free Cash Flow

The amount of cash a company generates after accounting for cash outflows to support operations and maintain its capital assets.

Capital Expenditures

Funds used by a company to acquire or upgrade physical assets such as property, industrial buildings or equipment.