Assume That Abby, Ben, Clara, Joe, and Matt Are the Only

question 13

Multiple Choice

Assume that Abby, Ben, Clara, Joe, and Matt are the only citizens in a community. A proposed public good has a total cost of $1,000. All five citizens will share an equal portion of this cost in taxes. The benefit of the public
Good is $220 to Abby, $210 to Ben, $210 to Clara, $180 to Joe, and $120 to Matt. Who will likely vote in favor of
This proposal?

• A) Abby, Ben, Clara, and Joe
• B) Ben, Clara, Joe, and Matt
• C) Ben, Clara, and Joe
• D) Abby, Ben, and Clara

---

Definitions:

Statement of Cash Flows

A finance report summarizing every cash inflow from ongoing business operations and external investments, and all cash outflows for corporate activities and investment purposes, within a set period.

Operating Activities

The primary day-to-day activities of a business involved in producing and selling its goods or services, reflected in the cash flow statement.

Indirect Method

A method used in cash flow statement preparation that adjusts net income for non-cash transactions and changes in working capital accounts to arrive at net cash flow from operating activities.

Increase in Cash

An upward movement in the cash balance of a business during a specific period of time.