Use the Table for the Question(s)below

question 85

Multiple Choice

Use the table for the question(s) below.
Consider the following realized annual returns:
-The geometric average annual return on the Index from 2000 to 2009 is closest to:

• A)9.75%.
• B)8.75%.
• C)7.10%.
• D)8.35%.

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Definitions:

Indirect Method

The indirect method is a way of calculating cash flows from operating activities in a cash flow statement by starting with net income and adjusting for changes in balance sheet items.

Wages Payable

A liability account representing the amount of wages owed to employees for work done that has not yet been paid.

Indirect Method

An approach to assemble the cash flow statement by adjusting net income for fluctuations in balance sheet accounts to determine the cash flow originating from operations.

Operating Activities

The component of cash flow statement that reflects the cash generated or used by the core business operations.