Darlington Company Entered into the Following Business Events During Its

question 147

Multiple Choice

Darlington Company entered into the following business events during its first month of operations. The company uses the perpetual inventory system.1) The company purchased $12,200 of merchandise on account under terms 2/10, n/30.2) The company returned $1,700 of merchandise to the supplier before payment was made.3) The liability was paid within the discount period.4) All of the merchandise purchased was sold for $18,400 cash.What is the net cash flow from operating activities as a result of the four transactions?

• A)$8,110
• B)$8,144
• C)$6,076
• D)$6,200

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Definitions:

Self-fulfilling Prophecy

A belief or expectation that indirectly or directly causes itself to become true, through the behavior it inspires.

Initiating Structure

Leadership behavior that defines and organizes work roles and activities, and sets clear objectives.

Autocratic Leadership

A leadership style where decisions are made unilaterally by the leader without input from group members, emphasizing control and command.

Buffer Criticism

The practice of softening or reducing the impact of critique, often by providing supportive feedback along with it.