A Company Reports the Following Balances: What Is Reported

question 14

Multiple Choice

A company reports the following balances: What is reported on the statement of cash flows prepared with the indirect method for the year ended December 31,2016? Assume there were no retirements of common stock during 2016.No dividends were declared in 2016.

• A)Financing Activity: Sale of Common Stock,$10,000
• B)Financing Activity: Sale of Common Stock,$20,000
• C)Operating Activity: Net Income $10,000
• D)B and C

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Definitions:

Insight Learning

A form of problem-solving in which a solution is suddenly realized after a period of consideration, rather than achieved through trial and error.

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A psychological condition where an individual expects failure due to previous experiences of inability to control outcomes, affecting motivation and behavior.

Contingency Blocking

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