Net Income for the Year Was $45,500

question 189

Multiple Choice

Net income for the year was $45,500. Accounts receivable increased $5,500, and accounts payable increased by $11,200. Under the indirect method, the cash flow from operations is

• A) $51,200
• B) $45,500
• C) $62,200
• D) $28,800

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Definitions:

ROM

Read-Only Memory, a type of non-volatile storage that is primarily used to store firmware or application software in electronic devices.

RAM

Short for Random Access Memory, a type of computer memory that can be accessed randomly and is used for storing the working data and machine code currently being used.

FORTRAN

A high-level programming language used primarily for numerical and scientific computing, known for its efficiency in the areas of complex mathematical calculations.

ALGOL

A high-level programming language designed for scientific, engineering, and mathematical calculations, serving as a basis for many modern programming languages.