The Net Income of the Company Is $120

question 3

Multiple Choice

The net income of the company is $120. Accounts payable increase by $20, depreciation is $15, and equipment is purchased for $40. If the firm issued $110 in new bonds, what is the total change in cash for the firm for all activities?

• A) increase of $225
• B) increase of $130
• C) decrease of $195
• D) decrease of $110

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Definitions:

Conservation Of Matter

A fundamental principle of classical physics that states that matter cannot be created or destroyed in an isolated system.

Abstract Terms

Words that represent ideas, concepts, or qualities that are not directly linked to sensory experiences.

Perspective

The art of delineating solid objects on a two-dimensional surface to give the right impression of their height, width, depth, and position in relation to each other.

Imaginative Play

A form of play in which children use their imagination to create scenarios and roles, often involving make-believe.