A City in California Spent $6 Million Repairing Damage to Its

question 56

Multiple Choice

A city in California spent $6 million repairing damage to its public buildings in Year 1. The following table shows the categories where the money was directed. How much did the city spend to fix damage caused by mold?

• A) $360,000
• B) $720,000
• C) $1,440,000
• D) $1,800,000

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Definitions:

Operating Activities

These involve the primary revenue-generating activities of an entity, such as cash flows from selling goods and services.

Cash Flows

This refers to the net amount of cash being transferred into and out of a business, especially in the context of operating, investing, and financing activities.

Financial Statement

A written record that conveys the business activities and financial performance of a company, commonly including balance sheet, income statement, and cash flow statement.

Dividends Declared

This is the amount of earnings a company's board of directors decides to distribute to shareholders in the form of dividends.