Avatar Company Uses the Direct Method to Prepare Its Statement

question 111

Multiple Choice

Avatar Company uses the direct method to prepare its statement of cash flows. Please refer to the following information reported for the year 2014:
$\begin{array}{lr}\text { Sales revenue: } & \$ 240,000 \\\text { Accounts receivable beginning balance: } & \$ 35,000 \\\text { Accounts receivable ending balance: } & \$ 31,000\end{array}$
In the operating activity section of the statement of cash flows, what amount would be shown for collections from customers?

• A) $244,000
• B) $236,000
• C) $240,000
• D) $258,000

Identify when a tax on goods is likely to be effective in both reducing consumption and generating revenue.

Understand that the impact of a tax on consumption can depend on the availability of substitutes.

Know the distinction between price elastic and price inelastic demand.

Understand the conditions under which a tax might not reduce consumption of a good.

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Definitions:

Electrons

Subatomic particles with a negative charge, orbiting the nucleus of an atom and involved in chemical bonds and electrical current.

Mass Number

The total number of protons and neutrons in the nucleus of an atom, which determines its atomic mass.

Protons

Particles with a positive charge found in the nucleus of an atom, playing a role in the atom's mass and total charge.

Neutrons

Subatomic particles found in the nucleus of an atom, with no electric charge and a mass slightly larger than that of protons.