"Churning" Refers To

question 32

Multiple Choice

"Churning" refers to:

• A) the increase in productivity caused by an increase in output.
• B) changes in the real wage over the business cycle.
• C) changes in the markup over the business cycle.
• D) the increase in output caused by an increase in productivity.
• E) structural change associated with technological progress.

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Definitions:

Direct Method

A technique used in cash flow statements to present cash activities directly related to operating activities.

Investing Adjustments

Adjustments made in the accounting records related to investments in securities or fixed assets to reflect their fair values as of the financial statement date.

Indirect Method

An accounting practice used to prepare the cash flow statement, where net income is adjusted for non-cash transactions and changes in working capital to calculate cash flow from operating activities.

Net Income

The total revenue minus total expenses, representing the company's profit.