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:

Sample Space

The set of all possible outcomes or results of a random experiment.

Independent

Referring to variables in experiments or statistical analysis that are not affected by other variables, indicating a variable that acts as a cause or predictor.

Probability

A measure of the likelihood that an event will occur, expressed as a number between 0 (impossibility) and 1 (certainty).

Federal Holidays

Public holidays in the United States established by federal law, during which non-essential federal government offices are closed.