In Its Most Recent Financial Year the Michelbook Country Club

question 13

Multiple Choice

In its most recent financial year the Michelbook Country Club reported that Accounts payable increased $13 000; inventory decreased $9000; profit was $22,000 and depreciation expense was $5000.On the statement of cash flows,net cash flow from operating activities is: Use the indirect approach

• A)$5000
• B)$23 000
• C)$31 000
• D)$49 000

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Definitions:

Boston Tea Party

A political protest by the American colonists against Great Britain in 1773, where they destroyed an entire shipment of tea sent by the East India Company in defiance of British tea taxes.

Marginal Tax Rate

The marginal tax rate is the rate at which the last dollar of a taxpayer's income is taxed, indicating the rate of tax that applies to each additional dollar of taxable income.

Regressive Tax

A tax imposed in such a manner that the tax rate decreases as the amount subject to taxation increases.

Child Income Tax Credit

A tax credit offered to taxpayers for each qualifying dependent child, intended to help families manage the costs of raising children.