Use the Table for the Question(s)below

question 84

Multiple Choice

Use the table for the question(s) below.
AOS Industries Statement of Cash Flows for 2015

-Consider the above statement of cash flows.Which of the following is TRUE of AOS Industries' operating cash flows?

• A)It collected more cash from its customers than they charged.
• B)It sold more inventory than it bought.
• C)It charged more on its accounts payable than it paid back.
• D)It charged less on its accounts payable than it paid back.
• E)It used $1.4 million of its cash on depreciation and amortization.

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Definitions:

Financial Ground

The state of financial stability or condition of an individual or organization.

Operating Lease

A lease agreement for short-term leasing of assets without transferring ownership rights.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a basis for computing rates of return and evaluating its capital structure.

Financial Lease

A type of lease wherein the lessee has possession and control of an asset during its significant life but does not own the asset, effectively treating it as a loan with asset as collateral.