The Net Income Reported on the Income Statement for the Current

question 16

Multiple Choice

The net income reported on the income statement for the current year was $240,000. Depreciation was $50,000. Account receivable and inventories decreased by $10,000 and $30,000, respectively. Prepaid expenses and accounts payable increased, respectively, by $1,000 and $8,000. How much cash was provided by operating activities?

• A) $301,000
• B) $337,000
• C) $321,000
• D) $329,000

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Managerial Hierarchy

The arrangement of individuals within an organization according to levels of managerial authority, from the lowest to the highest positions.

Topping Out

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A compensation strategy that assigns wages based on the skills, knowledge and experience possessed by an employee, as opposed to job title or rank.

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