Consider the Following Scenario to Answer the Next Four Questions

question 11

Multiple Choice

Consider the following scenario to answer the next four questions: Two friends, Rachel and Joey, enjoy baking bread and making apple pies. Rachel takes two hours to bake 1 loaf of bread and one hour to make 1 pie. Joey takes four hours to bake 1 loaf of bread and four hours to make 1 pie.
-What is Rachel's opportunity cost of baking 1 pie?

• A) 2 pies
• B) 1 pie
• C) 1 loaf of bread
• D) 1/2 loaf of bread
• E) 2 loaves of bread

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Definitions:

Financing Activities

Transactions and business events that involve raising capital and repaying investors, including issuing equity and debt, dividend payments, and loan repayments.

Net Cash

The amount of cash that remains after deducting cash outflows from cash inflows, reflecting a company's cash liquidity.

Statement Of Cash Flows

The statement of cash flows is a financial report that shows how changes in balance sheet accounts and income affect cash and cash equivalents, categorizing cash flows into operating, investing, and financing activities.

Investing Activities

Financial transactions and activities related to the acquisition and disposal of long-term assets and investments, typically reported on a company's cash flow statement.