Below Is an Example of an Incorrectly Prepared Statement of Cash

question 7

Multiple Choice

Below is an example of an incorrectly prepared statement of cash flows. The descriptions of activities are correct.
$\begin{array}{l}\text { Cash from operating activities }\\\begin{array}{lr}\text { Net Income } & \$ 60,000 \\\text { Depreciation } & (4,000) \\\text { Increase in accounts receivable } & (2,000) \\\text { Increase in deferred tax liability } & (1,000) \\& \$ 53,000 \\\hline\text{Cash from investing activities}&\\\text{Purchase of marketable securities}&\$(48,000) \\\text{Dividends paid}&\$(1,500) \\& \$(46,500) \\\hline\text{Cash from financing activities}&\\\text{Increase in Short-term debt}&\$(500) \\\text{Increase in Long-term debt}&(2,500) \\&\$(3,000) \\\text{Increase in cash}&\$ 3,500 \\\end{array}\end{array}$
-The correct Cash flows from investing activities is:

• A) ($41,000)
• B) ($45,500)
• C) ($48,000)
• D) none of the above

Understand the distinction between attributes and variables in quality control sampling.

Familiarize with the concepts of consumer's risk and the acceptable quality level (AQL).

Differentiate between assignable and natural variations and their implications for process control.

Understand various models and theories of consciousness.

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Definitions:

Transferring Risk

Shifting potential financial loss to another party through mechanisms like insurance, hedging, or outsourcing, to manage vulnerability to risk.

Investing

The process of distributing funds or resources with the aim of earning a return or profit.

Interest Income

Income earned from deposit accounts or investments that pay interest, such as bonds and savings accounts.

Financial Assets

Assets that derive value from a contractual claim, such as stocks, bonds, bank deposits, and other investments.