Tracy Received a Cell Phone Bill for $134

question 258

Multiple Choice

Tracy received a cell phone bill for $134.94. Included in the $134.94 was a charge of $39.99 for the monthly plan and a charge for 211 extra minutes. How much is Tracy being charged for each extra minute?

• A) $0.44
• B) $0.43
• C) $0.47
• D) $0.46
• E) $0.45

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Definitions:

Direct Approach

A method of income statement preparation where expenses are listed directly against revenue items to show the net income.

Indirect Approach

A method often used in preparing cash flow statements where net income is adjusted for non-cash transactions and changes in working capital.

Investing Activities

Transactions involving the purchase and sale of long-term assets and investment securities, as part of a company’s cash flow activities.

Financing Activities

Transactions involving raising capital and repaying investors, including issuing equity or debt, and dividend payments.