Pare Company Reported a Net Loss of $30,000 for the Year

question 47

Multiple Choice

Pare Company reported a net loss of $30,000 for the year ended December 31, 2014. During the year, accounts receivable decreased $15,000, merchandise inventory increased $25,000, accounts payable increased by $30,000, and depreciation expense of $20,000 was recorded. During 2014, operating activities

• A)used net cash of $10,000.
• B)used net cash of $25,000.
• C)provided net cash of $10,000.
• D)provided net cash of $25,000.

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Definitions:

Refund Of Premium Payments

This refers to the process where an insurance company returns a portion of the premium paid by the insured, often due to policy cancellation or adjustments.

Cancelled

Indicating that an event, order, service, or agreement has been terminated or called off.

Product Liability

The legal obligation of manufacturers and sellers to compensate for injuries caused by defective or dangerous products.

Manufacturer

A manufacturer is a person or company that makes goods for sale, often involving the transformation of raw materials into finished products through manual labor or machinery.