During 2010,Cruz Company Earned $5,000 in Cash Revenue,incurred $3,200 in Cash

question 134

Multiple Choice

During 2010,Cruz Company earned $5,000 in cash revenue,incurred $3,200 in cash expenses,and paid $500 in cash dividends to its owners.Based on this information,

• A) retained earnings increased by $1,300 during the year.
• B) net income was $1,300 for 2010.
• C) the net cash flow from operating activities was $1,300 for the year.
• D) total assets increased by $1,800 during 2010.

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Definitions:

Subtle Differences

Minor or not immediately obvious variations between objects, ideas, or situations, often requiring careful analysis to detect.

Gestalt Grouping

A principle in psychology that the mind tends to perceive objects as organized patterns or wholes, rather than as separate components.

Good Continuation

Good continuation is a principle in Gestalt psychology that individuals have a tendency to perceive continuous patterns in stimuli rather than abrupt changes.

Reversible Figures

Visual illusions where the brain switches between seeing two different images or perspectives in the same picture.