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For each of the following items, indicate (by placing an X) whether the item would be found on the statement of cash flows in column 1, the direct approach for determining the cash flows from operating activities, column 2, the indirect approach for determining the cash flows from operating activities, column 3, cash flows from investing activities, column 4, cash flows from financing activities. If you identify that an item affects the cash flows from operation, indirect method, also indicate whether it will be increasing (+) or decreasing (-) the cash flows.
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Impulse Buying
A spontaneous, unplanned decision to buy a product or service made just before a purchase.
Hedonic Treadmill
The theory that people perpetually return to a relatively stable level of happiness despite major positive or negative events or life changes.
Stickk.com
An online platform that utilizes commitment contracts to help users achieve personal goals through financial incentives and social support.
Behavioral Economics
A field of economics that examines how psychological, social, cognitive, and emotional factors influence the economic decisions of individuals and institutions, and how those decisions vary from those implied by classical theory.
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