Avatar Company Uses the Direct Method to Prepare Its Statement

question 7

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: What amount was paid to suppliers for operating expenses on a cash basis?

• A)$26,000
• B)$20,000
• C)$22,000
• D)$24,000

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Definitions:

Black Magic

A form of magic or supernatural practices intended to cause harm, control, or manipulate events or people in ways that are typically considered malevolent or unethical.

Evil Spirits

Supernatural entities believed in many cultures to be the cause of misfortune, illness, or evil.

Diathesis-Stress Model

A psychological theory that attempts to explain behavior as a predispositional vulnerability together with stress from life experiences.

Genetic Predisposition

The increased likelihood of developing a particular disease based on a person's genetic makeup.