The Following Entry Was Recorded by Hollow Inc

question 44

Multiple Choice

The following entry was recorded by Hollow Inc.:

What is the effect on Hollow's financial statements?

• A)A cash inflow from operating activities of $70,000.
• B)Net assets decreased by $10,000.
• C)A decrease of $10,000 in using the indirect method of determining cash flows from operating activities.
• D)Retained earnings increased by $10,000.

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Definitions:

Closing Represents

The finalization of a transaction or process, such as the closing of a sale or the end of a business operation.

Neutral Third Party

An independent entity or individual who provides unbiased assistance in conflict resolution or decision-making processes.

Buyer And Seller

Parties involved in the transaction of goods or services, where the buyer purchases from the seller.

Installment Payments

A system of paying for goods or services over a period of time in regular, scheduled payments.