During the Year, Doug's Bakery Decreased Its Accounts Receivable by $50

question 171

Multiple Choice

During the year, Doug's Bakery decreased its accounts receivable by $50, increased its inventory by $100, and decreased its accounts payable by $50. For these three accounts, the firm has a net:

• A) $200 use of cash.
• B) $100 use of cash.
• C) $0 use of cash.
• D) $100 source of cash.
• E) $200 source of cash.

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Definitions:

Tax Cutters

Advocates or policies aimed at reducing the level of taxation.

Social Security Tax

A tax levied on both employers and employees to fund the Social Security program, which provides retirement, disability, and survivorship benefits to qualifying individuals.

Medicare Tax

A payroll tax that funds Medicare, providing health insurance to individuals aged 65 and older in the United States.

Salary

A fixed regular payment, typically paid on a monthly or biweekly basis but often expressed as an annual sum, for professional or office work.