Accounts Receivable Resulting from Sales to Customers Amounted to $40,000

question 100

Multiple Choice

Accounts receivable resulting from sales to customers amounted to $40,000 and $31,000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $120,000. Exclusive of the effect of other adjustments, the net cash flows from operating activities to be reported on the statement of cash flows using the indirect method is

• A) $120,000
• B) $129,000
• C) $151,000
• D) $111,000

---

Definitions:

Securely Attached

Pertaining to an attachment style characterized by confidence in relationship security, stemming from consistent responsive caregiving.

Equity Theory

A theory suggesting that people feel more satisfied in relationships where perceived input and output are deemed to be equal among parties involved.

Sense of Fairness

The inherent human perception and expectation of equitable treatment and justice in interactions and distributions within society.

Social Exchange Model

A model which takes an economic perspective and assumes that people approach relationships with an underlying motivation of self-interest.