Which of the Following Would Appear on a Statement of Cash

question 91

Multiple Choice

Which of the following would appear on a statement of cash flows prepared using the direct method?

• A)Amortization expense
• B)Loss on sale of equipment
• C)Net income
• D)Collections from customers

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Definitions:

Quantity Demanded

It is the specific amount of goods or services that consumers are willing and able to purchase at a given price point, at a specific time.

Quantity Supplied

The total quantity of goods or services that businesses are ready and willing to sell at a designated price for a fixed period.

Productive Efficiency

A situation where a firm or economy cannot produce more of one good without reducing the output of another good, indicating optimal production levels.

Production Possibilities Curve

A curve showing the different combinations of two goods or services that can be produced in a full-employment, full-production economy where the available supplies of resources and technology are fixed.