Which of the Following Statements Is True

question 199

Multiple Choice

Which of the following statements is true?

• A) Planned economies have fared very well in recent years, with many of these economies thriving.
• B) Command economies operate the most efficiently because the government makes all the production decisions.
• C) In command economies consumers still exercise choice.
• D) In a command economy, consumers answer the questions of what to produce, how to produce it, and how to distribute it.

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Definitions:

Current GAAP

The most up-to-date set of Generally Accepted Accounting Principles that companies are required to follow when preparing financial statements.

Direct Method

A cash flow statement preparation approach that lists major categories of gross cash receipts and payments.

Operating Activities

refer to the primary revenue-generating activities of a business, including production, sales, and provision of services, reflected in its cash flow.

Financing Activities

This refers to transactions and events where cash flows into or out of a company to finance its operations and expansions, such as issuing equity or raising debt.