At the End of the First Year of Operations, the Balance

question 151

Multiple Choice

At the end of the first year of operations, the balance sheet of Midwood Medical Supply showed the following: Accounts Receivable, $5,000; Accounts Payable, $6,000; Inventory, $3,000; and Unexpired Insurance, $2,000. The corporation reported net income of $79,000 for the year, including depreciation expense of $5,000, and uses the indirect method of computing net cash flow from operating activities. Solely on the basis of this information, net cash flow from operating activities is:

• A) $78,000.
• B) $82,000.
• C) $77,000.
• D) $80,000.

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Definitions:

Mental Processes

The internal, covert activities of the mind, such as thinking, feeling, and decision-making.

Behaviorism

A theory of learning which states that all behaviors are acquired through conditioning.

Watson

John B. Watson, a psychologist from America, founded the behaviorism school of psychology, which focuses on observing and studying behavior.

Structuralism

An early school of psychology that aimed to understand the structure of the mind by analyzing the basic components of thoughts and sensations.