In Preparing a Company's Statement of Cash Flows for the Most

question 109

Multiple Choice

In preparing a company's statement of cash flows for the most recent year, the following information is available: Net cash flows from investing activities for the year were:

• A) $134,000 of net cash used by investing activities.
• B) $134,000 of net cash provided by investing activities.
• C) $120,000 of net cash used by investing activities.
• D) $252,000 of net cash used by investing activities.
• E) $221,000 of net cash provided by investing activities.

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Definitions:

Sale

The act of selling goods or services in exchange for money or other compensation.

Revenue

The total income generated by a company from its business activities, before any expenses are deducted.

Construction Contracts

Agreements between a contractor and client for the provision of construction services, detailing the project's scope, terms, and conditions.

Progress Payments

Partial payments made for work completed to date, common in long-term projects to provide cash flow to contractors or suppliers before the final product is delivered.