Using the Indirect Method for Preparing the Statement of Cash

question 87

Multiple Choice

Using the indirect method for preparing the statement of cash flows,what is the net cash flow from operating activities if net income is $39,000;depreciation expense is $9,000;and the decrease in accounts payable is $5,000.

• A)$48,000
• B)$53,000
• C)$35,000
• D)$43,000

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Definitions:

Government Action

Measures and policies implemented by a government to influence the economy or address social issues.

Monopolies

A market structure characterized by a single seller, selling a unique product in the market with no close substitutes, leading to limited competition.

MC Equals MR

In economics, the condition where a firm's marginal cost equals its marginal revenue is considered the optimal point for profit maximization.

Horizontal Demand

Horizontal Demand describes a market condition where the demand for a product is exceedingly elastic, indicating that a slight change in price can lead to a significant change in the quantity demanded.