Monster Cookie Ltd

question 60

Multiple Choice

Monster Cookie Ltd.reported a loss of $12,000 for the year.During the year, accounts receivable decreased $5,000, merchandise inventory increased $4,000, accounts payable increased by $13,000, and depreciation expense of $7,000 was recorded.Using the indirect method, operating activities

• A)used net cash of $33,000.
• B)used net cash of $23,000.
• C)provided net cash of $9,000.
• D)provided net cash of $7,000.

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Definitions:

Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, used as an indicator of inflation.

Base Date

A specific point in time selected as a reference or starting point for calculations, measurements, or comparisons.

Gift-Wrapping Packages

Services or materials provided, often during holidays or special occasions, to aesthetically package gifts.

Importer

An entity that brings goods or services into a country from abroad for sale.