Avatar Company Uses the Indirect Method to Prepare Its Statement

question 118

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. How much was the net change in cash during the year?

• A)$3,000 negative
• B)$79,000 positive
• C)$3,000 positive
• D)$61,000 negative

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Definitions:

Output Rises

An increase in the production of goods and services within an economy.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service relative to its market price.

Units

A standard measurement for quantity used to quantify material amount or the extent of something.

Good

A physical item that is produced and can be sold or traded to satisfy people's wants or needs.