In Preparing a Company's Statement of Cash Flows Using the Indirect

question 143

Multiple Choice

In preparing a company's statement of cash flows using the indirect method, the following information is available: Net cash provided by operating activities was:

• A) $120,000.
• B) $71,000.
• C) $70,000.
• D) $24,000.
• E) $110,000.

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Definitions:

Unemployment Rate

The percentage reflecting those who are in the labor force and are not employed, yet are seeking employment.

Cost-push Inflation

Inflation caused by an increase in prices of inputs like labour, raw material, etc. It’s when the supply side of the economy’s production function becomes more expensive.

Demand-pull Inflation

Inflation that occurs when the demand for goods and services exceeds their supply, leading to an increase in prices.

Demand-pull Inflation

A situation where inflation is caused by an increase in demand for goods and services, exceeding the available supply.