Which Is a Correct Statement

question 26

Multiple Choice

Which is a correct statement?

• A)The direct method of presentation for the cash flow statement must be used under ASPE.
• B)The direct method of presentation for the cash flow statement must be used under IFRS.
• C)The statement of cash flows explains the change between opening and closing cash.
• D)The "cash" balance on the cash flow statement does not have to be equal to the "cash" balance amount on the balance sheet.

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Definitions:

National Output

National output is the total value of services and goods produced by a country's economy over a specified period of time, essentially synonymous with Gross Domestic Product (GDP).

Saving Function

As income rises, saving rises, but not as quickly.

MPC (Marginal Propensity To Consume)

The proportion of an increase in income that a consumer spends on additional goods and services, rather than saving.

MPC (Marginal Propensity To Consume)

The proportion of an additional income that an individual tends to spend on consumption rather than saving.