Avatar Company Uses the Direct Method to Prepare Its Statement

question 114

Multiple Choice

Avatar Company uses the direct method to prepare its statement of cash flows. Please refer to the following financial statement information for the year 2014: On Avatar's statement of cash flows, using the direct method, what amount will be shown for payments to employees?

• A)$62,000
• B)$42,000
• C)$24,000
• D)$45,000

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Definitions:

Financial State

A condition or situation of an entity's (person, organization, or country) finances, including assets, liabilities, and net worth at a given time.

Bad Harvests

Periods of agricultural failure resulting in food shortages, often caused by unfavorable weather conditions, disease, or pests.

Treasury

A government department responsible for managing public revenue, finance, and expenditure.

National Assembly

A legislative body, often in a revolutionary context, representing a nation's populace and having the authority to enact laws and make decisions for the public good.