When Reconciling Net Income to Net Cash Provided by Operating

question 184

Multiple Choice

When reconciling net income to net cash provided by operating activities, a(n) _ is an addition to net income.

• A) increase in wages payable
• B) increase in accounts receivable
• C) increase in inventories
• D) All of these answers are correct.

Know the scope and applicability of the United Nations Convention on Contracts for the International Sales of Goods (CISG).

Differentiate between express, implied, unilateral, and bilateral contracts through examples.

Identify the elements of consideration in contract law and its significance in contract formation.

Recognize contracts implied in law and the concept of quasi-contracts.

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Definitions:

Average Variable Cost Curve

A graph that shows how the average variable cost of production changes as the quantity of output changes.

Marginal Cost

The price involved in creating another unit of a good or service.

Break-even Price

The price at which total revenues equals total costs, resulting in neither profit nor loss.

Shut-down Price

The price level at which a business's revenue just covers its variable costs, below which it will cease operations.