Upon Review of a Statement of Cash Flows,the Following Was

question 103

Multiple Choice

Upon review of a statement of cash flows,the following was noted: $\begin{array}{llcc}\text {Cadn flers from agereting artivities}& \$ 30,000\\ \text {Cash flows from invertine activities}& 80,000 \\ \text {Cast flows from finanding activities}& (130,000) \\\end{array}$
From this information,it is likely that the company is

• A)using cash from operations and selling long-term assets to pay back debt
• B)using cash from operations and borrowing to purchase long-term assets.
• C)using its profits to expand growth.
• D)using cash from investors to provide for operations.

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Definitions:

Efficiency Wages

Efficiency wages are wages set above the market equilibrium by employers, aiming to boost productivity by increasing worker satisfaction and reducing turnover.

Labor Unions

Organizations formed by workers to protect their rights, improve working conditions, and negotiate wages and benefits with employers.

Minimum Wage

The lowest legal salary that employers can pay to workers, established by government legislation.

Right-to-Work Laws

Legislation that prohibits union security agreements, ensuring that employment is not affected by membership or non-membership in a labor union.