Adama Company Reported a Net Loss of $6,000 for the Year

question 39

Multiple Choice

Adama Company reported a net loss of $6,000 for the year ended December 31, 2017. During the year, accounts receivable increased $15,000, inventory decreased $12,000, accounts payable decreased by $20,000, and depreciation expense of $12,000 was recorded. During 2017, operating activities

• A) used net cash of $17,000.
• B) used net cash of $29,000.
• C) provided net cash of $24,000.
• D) provided net cash of $21,000.

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Definitions:

Article 2(A)

A provision found in the Uniform Commercial Code that governs leases of personal property in the United States.

UCC

The Uniform Commercial Code (UCC) is a comprehensive set of laws that governs all commercial transactions in the United States.

Lessor

An individual or entity that leases property to another party, known as the lessee.

Article 2(A)

A section of the Uniform Commercial Code that deals with leases of personal property.