The First Month of Operation Showed the Net Cash from Operating

question 14

Multiple Choice

The first month of operation showed the net cash from operating activities to be $3,760, the net cash from investing activities to be ($5,415) , and the ending cash balance to be $3,425. The net cash from financing activities must be:

• A) $1,770.
• B) $5,080.
• C) $5,750.
• D) $12,600.

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Definitions:

Interest

The cost of borrowing money, typically expressed as a percentage of the principal amount, or the income earned from lending funds.

Straight-Line Method

A depreciation technique that allocates an equal amount of depreciation expense for an asset over its useful life.

General Journal Entry

A record in the general journal that includes all the financial transactions of a company, showing accounts affected, amounts, and whether those amounts are debits or credits.

Amortizing

The process of gradually paying off a debt over time through regular payments.