Avatar Company Uses the Indirect Method to Prepare Its Statement

question 133

Multiple Choice

Avatar Company uses the indirect method to prepare its statement of cash flows. Please refer to the following information for the year 2014. Which of the following statements is TRUE?

• A)The statement of cash flows will show an ending cash balance of $3,000.
• B)The statement of cash flows will show total net cash flows of $70,000 positive.
• C)The statement of cash flows will show total net cash flows of $3,000 negative.
• D)The statement of cash flows will show total net cash flows of $3,000 positive.

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Definitions:

Motion to Dismiss

A legal procedure requesting the court to dismiss a case for reasons such as lack of jurisdiction, failure to state a claim, or other grounds.

Motion for Judgment

A formal request to a court for a decision to be made based on the facts presented, typically without going to trial.

Motion to Dismiss

A legal procedure by which a defendant requests the court to dismiss a case on specific grounds, such as lack of legal foundation or evidence.

Affirmative Defenses

Legal defenses used in litigation where the defendant introduces evidence, apart from denying the allegations, to avoid liability.