Accounts Receivable Arising from Trade Transactions Amounted to $62,000 and $78,000

question 55

Multiple Choice

Accounts receivable arising from trade transactions amounted to $62,000 and $78,000 at the beginning and end of the year, respectively.Net income reported on the income statement for the year was $125,000.Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows prepared by the indirect method are:

• A) $109,000.
• B) $141,000.
• C) $125,000.
• D) $140,000.

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Definitions:

Supply Curves

Visual representations indicating how the quantity supplied of a good changes in response to changes in its price, usually upward sloping.

Market Demand

The cumulative demand for a good or service from all buyers in the market, determined by their willingness and ability to purchase at various price points.

Marginal Revenue

The increased earnings obtained by selling an extra unit of a good or service.

Total Revenue

The total income generated from the sale of goods or services.