John Is Trying to Decide Where to Attend College

question 27

Multiple Choice

John is trying to decide where to attend college. He has researched several schools online; he has visited three colleges; and he has discussed his preferences with his family. John is currently engaged in what consumer activity?

• A) Purchase activity
• B) Consumption activity
• C) Use activity
• D) Disposal activity
• E) None of the above is correct.

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Definitions:

Direct Method

A way of preparing the cash flow statement where actual cash flows from operating activities are listed directly.

Administrative Expenses

Costs related to the general administration of a business, such as salaries of office staff, rent, and utilities.

Cash Basis

A method in accounting where revenues and expenses are recorded only when cash is received or paid out, respectively.

Statement of Cash Flows

A financial statement that summarizes a company's cash inflows and outflows over a specific period.