Company C
the Following Chart Represents Company C's Operating Activities

question 172

Multiple Choice

Company C
The following chart represents Company C's operating activities section of a statement of cash flows for Year 1:
$$\begin{array}{l} \underline{\text { Operatine artivities: }}\\ \text { Cash collected from customers } & \$ 550,000 \\\text { Cash payments for merchandise } & ( 150,000 ) \\\text { Cash payments for operating expenses } & \underline{( 275,000 ) }\\\text { Net cash inflow from operating activities } & \underline{ \$ 125,000}\end{array}$$
-Refer to the figure Company C.Which method of preparing the operating activities section was used?

• A) direct method.
• B) indirect method
• C) balance sheet method
• D) retained earnings method

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Definitions:

Reaction Sequence

A series of chemical reactions where the product of one reaction becomes the reactant in the next reaction.

Benzene

An aromatic hydrocarbon with a ring structure of six carbon atoms bonded in a planar hexagon with alternating single and double bonds.

Benzoic Acid

A simple aromatic carboxylic acid with the formula C6H5COOH, commonly used in food preservation, medicine, and organic synthesis.

5-Oxohexanoic Acid

A keto acid with the formula C6H10O3, featuring a ketone functional group (=O) and a carboxylic acid group (-COOH) in its structure.