First Use Front-End Rounding to Write an Estimate of the Answer

question 143

Multiple Choice

First use front-end rounding to write an estimate of the answer, and then add the decimals to obtain an exact answer.
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• A)Estimate: 15, exact: 15.3322
• B)Estimate: 16, exact: 15.3422
• C)Estimate: 14, exact: 14.3322
• D)Estimate: 14, exact: 14.3422

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Definitions:

Cash Dividends

Distributions of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders in the form of cash.

Net Cash Flow

The variance between money coming in and going out of a business during a given timeframe.

Indirect Method

A cash flow statement approach that adjusts net income for changes in balance sheet accounts to identify cash flow from operating activities.

Operating Activities

Activities that involve the core business operations of a company, such as selling goods and services.