Planet & Co

question 76

Multiple Choice

Planet & Co.reported net income for the current year.Which of the following business transactions would cause cash from operating activities to be higher than the amount of net income?

• A)Cash dividends were paid to stockholders during the year.
• B)Depreciation expense was recorded for the year.
• C)A bank loan was repaid during the year.
• D)Equipment was purchased for cash during the year.

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Definitions:

Public Good

A product or assistance made available to all societal members without financial gain, provided by either state bodies or voluntary private groups or individuals.

Nonrival

A characteristic of a good whereby one person's consumption does not reduce its availability to others.

Nonexcludable

A characteristic of a good or service that prevents the owner or provider from excluding individuals from using it once it has been provided.

Marginal Private Benefit

The additional benefit received by a consumer or producer from consuming or producing one more unit of a good or service.