Kim Mathews,a Retired School Teacher,recently Relocated to Her Old Neighborhood

question 109

Multiple Choice

Kim Mathews,a retired school teacher,recently relocated to her old neighborhood.She called the trash collection company of her new neighborhood to enter her address but was dismayed to learn that they charged an extra $10 compared to the other companies in other areas.She complained to the company manager but was told that she had to either pay the bill or dispose the trash on her own.Kim had no other option but to pay the bill.Which of the following is the reason why Kim was treated so poorly by the company?

• A) The trash company was dependent on her repeat business.
• B) The trash company had no other competitors providing this service.
• C) It was a regulated service funded by the city's authorities.
• D) The trash company didn't want to serve retired individuals.
• E) The trash company served only the higher-income households.

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Definitions:

Indirect Method

A financial accounting technique used in cash flow statements to adjust net income for the effects of non-cash transactions.

Current GAAP

Generally Accepted Accounting Principles as they are presently defined and practiced in the United States for financial reporting.

Direct Method

A way of reporting cash flows from operating activities by showing major classes of gross cash receipts and payments.

Operating Activities

Operating activities involve the primary day-to-day functions of a business related to producing and selling its goods or services.