The Net Income Reported on the Income Statement for the Current

question 21

Multiple Choice

The net income reported on the income statement for the current year was $225,000. Depreciation recorded on plant assets was $38,000. Accounts receivable and inventories increased by $2,000 and $8,000, respectively. Prepaid expenses and accounts payable decreased by $1,000 and $11,000 respectively. How much cash was provided by operating activities?

• A) $205,000
• B) $243,000
• C) $225,000
• D) $259,000

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Definitions:

Expectancy Theory

Expectancy Theory is a motivational theory that suggests individuals are more likely to perform actions if they expect their efforts will lead to desired outcomes.

Motivation Principles

Fundamental guidelines or theories that explain how and why individuals are driven to achieve goals, perform tasks, or engage in specific behaviors.

Introduction Path-Goal Theory

An initial overview or explanation of the leadership theory that emphasizes how leaders can facilitate the achievement of objectives by clarifying the path and removing obstacles.

Studies

Systematic investigations or research aimed at acquiring knowledge and understanding in a specific field.