Last Year, Amber Company Reported Sales of $200,000 on Its

question 121

Multiple Choice

Last year, Amber Company reported sales of $200,000 on its income statement.During the year, accounts receivable decreased by $33,000 and accounts payable decreased by $28,000.The company uses the direct method to determine net cash flow from operating activities on the statement of cash flows.The sales revenue adjusted to a cash basis would be:

• A) $233,000.
• B) $345,000.
• C) $400,000.
• D) $120,000.

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Definitions:

Vice President

The second-highest executive officer in the government of the United States, or in the administrative structure of other countries, elected simultaneously with the president and ready to assume the presidency in case of death, resignation, or removal of the president.

Stagflation

A combination of stagnant economic growth and high inflation present during the 1970s.

Economic Growth

An increase in the production of goods and services in an economy over a period of time, usually measured as the annual percentage increase in real GDP.

High Inflation

A condition in the economy where the prices of goods and services rise rapidly, decreasing the purchasing power of money.