Use the Following to Answer Questions

question 125

Multiple Choice

Use the following to answer questions:
Figure: Imposition of a Tax
-(Figure: Imposition of a Tax) Refer to the figure. After the imposition of a $4 tax, the government collects revenues of:

• A) $75.
• B) $100.
• C) $210.
• D) $50.

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Definitions:

Direct Method

An approach to reporting cash flows from operating activities which lists major classes of gross cash receipts and payments.

Cash Flow

The sum of funds moving into and out of a company, particularly influencing its liquidity.

Salaries

Payments made to employees for their services, typically expressed as an annual sum and paid at regular intervals.

Investing Activities

Financial activities related to the purchase and sale of long-term assets or investment securities, impacting a company's cash flow.