Robinson Company Reported a Net Loss of $23,000 During the Year.Comparing

question 1

Multiple Choice

Robinson Company reported a net loss of $23,000 during the year.Comparing beginning and ending balances,you determine the following: (1) accounts receivable increased by $8,000;and (2) accrued expenses payable increased by $5,000.What was the amount of cash used in operating activities during the year?

• A) $26,000
• B) $36,000
• C) $20,000
• D) $10,000

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Definitions:

Normal Balance

The side of an account that is increased, which for assets, expenses, and dividends is the debit side, and for liabilities, equity, and revenue is the credit side.

Financial Statement

A documented account detailing the commercial operations and fiscal outcomes of an enterprise.

Normal Balance

The usual balance of an account based on its classification in the accounting system, typically debit for assets and expenses, and credit for liabilities, equity, and revenue.

Financial Statement

Formal records of the financial activities and position of a business, person, or other entity.