Guenther Corporation Reported Profit of $50,000 for the Year

question 122

Multiple Choice

Guenther Corporation reported profit of $50,000 for the year.During the year, accounts receivable increased by $8,000, accounts payable decreased by $4,000 and depreciation expense of $6,000 was recorded.Using the indirect method, cash provided by operating activities for the year is

• A)$56,000.
• B)$54,000.
• C)$50,000.
• D)$44,000.

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Definitions:

Production Orders

Instructions for manufacturing a certain number of products, detailing the materials, components, and assembly or production processes required.

Activity-Based Costing

A costing method that assigns overhead and indirect costs to specific activities based on their use or consumption.

Activity-Based Costing

A method of costing that identifies specific activities within an organization and assigns costs to those activities based on their use of resources.

Activity-Based Costing

A costing method that assigns costs to products and services based on the resources they consume.