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:

Taxes

Mandatory financial charges or levies imposed by a government on its citizens and businesses to fund public expenditures.

Canadian Dollars

The Canadian dollar is the currency of Canada, often represented by the symbol CAD or simply $.

Lower Terms

Expressing a fraction in its simplest form so that the numerator and denominator are as small as possible.

Ratio

A comparison, by division, of the relative size of two or more quantities.