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

---

Definitions:

Financial Status

An individual's or entity's current economic standing, often assessed through factors like income, debts, assets, and credit.

Bona Fide Occupational Qualifications

Employment qualifications deemed necessary to the normal operation of a particular business or job, where discrimination based on certain characteristics like gender or religion may be allowed.

EEOC

Equal Employment Opportunity Commission, a federal agency enforcing laws against workplace discrimination.

Discrimination

Unfair or prejudicial treatment of individuals based on characteristics such as race, gender, age, or sexual orientation.