Net Income Reported for the Current Year Was $100,000

question 14

Multiple Choice

Net income reported for the current year was $100,000. Depreciation expense was $25,000. Accounts Receivable and Inventories decreased $5,000 and $15,000, respectively. Prepaid Expenses and Accounts Payable increased, respectively, by $500 and $4,000. Using the indirect method, how much cash was provided by operating activities?

• A) $101,500
• B) $123,500
• C) $140,500
• D) $148,500

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Definitions:

Accumulate Fortunes

The process or act of amassing a significant amount of wealth or resources over time.

Poverty

The state of having insufficient financial resources to meet basic living needs such as food, shelter, and clothing.

Ethical Relativist

An individual who believes that morality is relative to the norms of one's culture, meaning that what is considered moral in one society may be considered immoral in another.

Central Authority

A central authority is a governing body or administrative organization that has primary responsibility for overseeing a specific area of policy or regulation at a national or international level.