A Method of Computing and Reporting the Net Cash Provided

question 40

Multiple Choice

A method of computing and reporting the net cash provided (used) by operating activities that lists the major items of operating cash receipts,and then subtracts the major items of operating cash payments.

• A)Financing activities
• B)Investing activities
• C)Statement of cash flows
• D)Indirect method
• E)Direct method
• F)Operating activities

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Definitions:

Price Ceiling

A legally imposed maximum price on goods or services, beyond which they cannot be sold.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price.

Surplus

A situation where the quantity supplied exceeds the quantity demanded, or when revenues exceed expenses.

Easily Stored

Refers to items or data that can be kept or archived with minimal effort or resources.