Match the Terms with the Definitions

question 66

Multiple Choice

Match the terms with the definitions.
-A method of preparing the statement of cash flows in which the revenues and expenses reported on the income statement are adjusted to reflect the amount of cash received or paid for each item.

• A)cash equivalents
• B)direct method
• C)financing activities
• D)indirect method
• E)investing activities
• F)noncash investing and financing activities
• G)operating activities
• H)statement of cash flows

---

Definitions:

Elastic Demand

Elastic demand refers to a situation where the quantity demanded of a product or service significantly changes in response to changes in its price.

Excise Tax

A specific type of tax imposed on certain goods, services, or activities, often aimed at discouraging their use or raising revenue from specific sources.

Government Revenue

The total money received by a government from taxes and non-tax sources to finance government operations and services.

Excise Tax

A tax applied to specific goods or services, often included in the price of products such as tobacco, alcohol, and fuel.