The Price of a Gallon of Gasoline Increased from $2

question 93

Multiple Choice

The price of a gallon of gasoline increased from $2.00 to $2.25 while the price of a ride on the city bus increased from 50 cents to 75 cents. The relative price of riding the city bus

• A) increased from 0.25 to 0.6.
• B) decreased from 4.0 to 3.0.
• C) stayed constant at 0.25.
• D) stayed constant at 4.0.

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Definitions:

Accumulated Depreciation

The total amount of a tangible asset's cost that has been allocated to depreciation expense since the asset was put into use.

Operating Section

A part of the cash flow statement that shows the cash inflows and outflows from a company's primary operating activities.

Indirect Method

A way of reporting cash flows from operating activities on the cash flow statement where net income is adjusted for non-cash transactions, deferrals, and accruals.

Statement of Cash Flows

A financial report detailing how adjustments in balance sheet items and income influence cash and cash equivalents, segmented into operating, investing, and financing sections.