Avatar Company Uses the Direct Method to Prepare Its Statement

question 37

Multiple Choice

Avatar Company uses the direct method to prepare its statement of cash flows. Please refer to the following financial statement information for the year 2014:
- On Avatar's statement of cash flows, using the direct method, what amount will be shown for total net cash flow from operating activities?

• A) $213,000 negative
• B) $32,000 positive
• C) $32,000 negative
• D) $245,000 positive

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Definitions:

Positive Reinforcer

An incentive that, when applied following an action, heightens the probability of the action being repeated.

Negative Reinforcer

An unpleasant stimulus whose removal leads to an increase in the probability that a preceding response will be repeated in the future.

Immediate Reinforcer

refers to a reward that occurs directly after a behavior, enhancing the likelihood of that behavior occurring again in the future.

Latent Learning

Learning that occurs without immediate reinforcement and is not demonstrated until there is an incentive to perform.