Four of the Five Statements Below Contain a Stock and a Flow.Which

question 81

Multiple Choice

Four of the five statements below contain a stock and a flow.Which statement describes ONLY flow variables?

• A)Chris earns $1500 per month and has $4000 in his savings account at the bank.
• B)Nancy spends $400 per month on her credit card and has a balance owing of $2567.
• C)The Transit Authority of Mytown collects $22 000 in fares per day and has an operating budget of $2 million per year.
• D)Country X spends an average of $1 million per year for flood relief and has an emergency services fund of $20 million.
• E)The Canadian Federal government has a debt of approximately $750 billion and an annual deficit of over $25 billion dollars.

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Definitions:

Capital Changes

Adjustments or alterations in the equity or ownership capital of a company, often due to investments, dividends, or profits.

Accounting Period

A specific period of time for which financial activities are recorded and reported, such as a month, quarter, or year.

Withdrawals

Withdrawals indicate the amount of money or assets taken out from a business by its owner(s) for personal use.

Business Expenses

Costs incurred in the ordinary course of business, including salaries, utilities, and rent.