Using the Direct Method of Preparing the Statement of Cash

question 152

Multiple Choice

Using the direct method of preparing the statement of cash flows,to determine the cash effects of operating activities,a gain on the sale of equipment would be

• A)Added to operating expenses
• B)Deducted from payments for operating expenses
• C)Deducted from sales revenue
• D)Ignored because a gain is not a part of sales or operating expenses

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Definitions:

Price Discrimination

A pricing approach in which the same provider sells identical or nearly identical products or services for varying prices across different markets.

Monopolists

Individuals or firms that are the sole providers of a unique product or service in a market, with the power to control prices and exclude competitors.

Price Discrimination

A pricing strategy that charges customers different prices for the same product or service based on what the seller thinks they can get the customer to agree to.

Elastic Demand

A situation where the quantity demanded of a good or service changes significantly as its price changes.