A Company Uses the Indirect Method to Prepare the Statement

question 94

Multiple Choice

A company uses the indirect method to prepare the statement of cash flows.It presents the following amounts on its financial statements. $$\begin{array} { | l | r | r | } \hline & \text { End of this year } & \text { End of prior year } \\\hline \text { Accuunts receivable } & \$ 110,000 & \$ 100,000 \\\hline \text { Cost af gouds sald } & 560,000 & \\\hline \text { Sales revenue } & 830,000 & \\\hline \text { Accounts payable* } & 75,000 & 67,000 \\\hline \text { Inventary } & 86,000 & 105,000 \\\hline \text { Salary payable } & 13,000 & 10,000 \\\hline \text { Salary exgense } & 49,000 & 45,000 \\\hline\end{array}$$ *Relates solely to the acquisition of inventory
What will appear in the operating activities section related to accounts receivable?

• A)The increase of $10,000 will be subtracted from sales revenue.
• B)The increase of $10,000 will be added to net income.
• C)The increase of $10,000 will be added to sales revenue.
• D)The increase of $10,000 will be subtracted from net income

Recognize the practical aspects of starting a business, including the use of formal business plans.

Define a startup and understand its characteristics.

Understand the concept of serial entrepreneurship and its examples.

Understand the systematic naming of alkanes using IUPAC nomenclature.

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Definitions:

Production Function

A mathematical equation that describes the maximum output that can be produced with a given set of inputs, such as labor and capital.

Output

Refers to the total amount of goods or services produced by an entity in a given period.

Production Function

A mathematical relationship that describes the maximum amount of output that can be produced from a given set of inputs under certain technology.

Returns To Scale

The rate at which production output increases as a result of a proportional increase in all inputs or resources.