A Company Uses a Technique Called "Price Gouging

question 35

Multiple Choice

A company uses a technique called "price gouging".This action would normally be considered:

• A)ethical but illegal.
• B)unethical and illegal.
• C)ethical and legal.
• D)unethical but legal.

---

Definitions:

Investing Activity

This refers to transactions involving the acquisition and disposal of long-term assets and other investments not included in cash equivalents.

Statement of Cash Flows

A financial report detailing the impact of alterations in balance sheet figures and income on cash and cash equivalents, dividing the cash flows into categories of operating, investing, and financing activities.

Operating Activities

Transactions and events associated with the primary operations of a business, such as sales and service provision, reflected in its cash flow.

Indirect Method

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