Where Would the Payment of Salaries Appear on the Statement

question 53

Multiple Choice

Where would the payment of salaries appear on the statement of cash flows?

• A)Not on statement of cash flows, but on the statement of earnings with the revenues
• B)Not on statement of cash flows, but on the statement of operations as part of cost of goods sold
• C)With the current liabilities
• D)With the operating activities

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Definitions:

Lowering the Price

A strategy in which a seller reduces the cost of a product or service to attract more buyers or drive sales volume.

Monopoly Firms

Entities that are the sole providers of a product or service in a market, facing no competition.

Downward-Sloping

A term often used in economics to describe a line or curve on a graph that demonstrates a decrease in one variable as another increases.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of the good that consumers are willing and able to purchase at each price.