Clean Sweep,Inc

question 6

Multiple Choice

Clean Sweep,Inc.started the month of June with $600 worth of cleaning supplies.During the month,Clean Sweep purchased $400 of supplies for cash.At June 30,$300 worth of supplies was unused.How will the company report these events on its statement of cash flows for the month of June?

• A)The statement of cash flows will show $(400)cash paid for supplies.
• B)The statement of cash flows will show supplies expense of $(1,000).
• C)The statement of cash flows will show supplies expense of $(700).
• D)This is a trick question.The statement of cash flows will not report anything about any of these events.

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Definitions:

Inflation Rate

The percentage increase in the general level of prices for goods and services over a period.

U.S. Exports

Goods, services, and technologies sold and shipped by the United States to other countries, contributing to the nation's income and employment.

Dollar Appreciates

An increase in the value of the US dollar relative to other currencies in the global foreign exchange markets.

European Vacation

A period of leisure time spent traveling or staying in countries within Europe, often characterized by visits to cultural sites, historical landmarks, and natural attractions.