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Question - ABC Co.'s petty cash receipts indicate the following expenditures for the end of October:
Office supplies $490
Miscellaneous selling expense $300
Miscellaneous administrative expense $120
Required - What is the cumulative effect of these transactions on the statement of cash flows?
a. $910 decrease in operating activities
b. $420 decrease in financing activities
c. $490 increase in operating activities
d. No effect on the statement of cash flows
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