Table 22-2 Voters Are Deciding How They Will Spend the City of City

question 89

Multiple Choice

Table 22-2
Voters are deciding how they will spend the City of Elmongary's budget surplus.They have enough money to build one of three projects: build a school, build a skate park, or build a bike lane for commuters.They agree that they will have two pairwise votes to determine how to spend their budget, with the majority determining the outcome on each vote.The first, second, and third choices for each project are as indicated in the table below.
-Refer to Table 22-2.If (1) the first vote pits "school" against "bike lane," and (2) the second vote pits "skate park" against the winner of the first vote,what is the outcome

• A)"School" wins the first vote and "school" wins the second vote, so they build a school.
• B)"School" wins the first vote and "skate park" wins the second vote, so they build a skate park.
• C)"Bike lane" wins the first vote and "bike lane" wins the second vote, so they build a bike lane.
• D)"Bike lane" wins the first vote and "skate park" wins the second vote, so they build a skate park.

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Definitions:

Net Income

The residual income of a company after total revenue has been diminished by all costs and taxes.

Cash Flows

The net amount of cash being transferred into and out of a business, especially considered important for assessing liquidity, flexibility, and overall financial health.

Indirect Method

An approach to preparing the cash flow statement where net income is adjusted for changes in balance sheet accounts to calculate cash from operating activities.

Operating Activities

The section of a business's cash flow statement that accounts for its core business operations' cash inflows and outflows, involving receipts from sales, payments to suppliers, and payroll.