Accounts Receivable Arising from Sales to Customers Amounted to ¥350,000

question 36

Multiple Choice

Accounts receivable arising from sales to customers amounted to ¥350,000 and ¥400,000 at the beginning and end of the year, respectively.Income reported on the income statement for the year was ¥1,500,000.Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is

• A)¥1,500,000.
• B)¥1,550,000.
• C)¥1,850,000.
• D)¥1,450,000.

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Definitions:

Competitive Industry

An industry where numerous producers are in competition with one another, leading to a situation where no single firm has significant market power, and prices are determined by overall supply and demand.

Marginal Revenue

Marginal Revenue is the increase in revenue resulting from the sale of one additional unit of a product or service.

Marginal Cost

The financial impact of manufacturing an additional unit of a product or service.

Profit Maximization

A company's objective to make the most amount of profit possible with its current resources and market conditions.