Avatar Company Uses the Indirect Method to Prepare Its Statement

question 80

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. If the beginning cash balance is $18,000, what would the ending cash balance be?

• A)$21,000
• B)$18,000
• C)$3,000
• D)$15,000

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Definitions:

World Commodity Prices

The prices at which basic products, which are traded globally, are sold and bought in the international markets.

Short Run

(1) In microeconomics, a period of time in which producers are able to change the quantities of some but not all of the resources they employ; a period in which some resources (usually plant) are fixed and some are variable. (2) In macroeconomics, a period in which nominal wages and other input prices do not change in response to a change in the price level.

Long Run

In microeconomics, a period of time long enough to enable producers of a product to change the quantities of all the resources they employ, so that all resources and costs are variable and no resources or costs are fixed. In macroeconomics, a period sufficiently long for nominal wages and other input prices to change in response to a change in a nation’s price level.

U.S. Electricity

The system of electrical generation, transmission, and distribution operated within the United States.