Which of the Following Is Not a Typical Cash Flow

question 19

Multiple Choice

Which of the following is not a typical cash flow under operating activities?

• A) cash inflows from sale of goods or services
• B) cash inflows from interest
• C) cash outflows to employees
• D) cash outflows to suppliers
• E) cash inflows from sale of property, plant, and equipment

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Definitions:

Business Cycle

The fluctuations in economic activity that an economy experiences over a period, typically characterized by expansion (growth) and contraction (recession) phases.

MPC

The marginal propensity to consume, which represents the portion of additional income that a household spends on consumption instead of saving.

Multiplier

In economics, a factor by which a change in one economic variable, such as spending, leads to a greater change in another variable, such as GDP.

Nondiscretionary Fiscal Policy

involves automatic stabilizers that adjust government spending and taxes without the need for new legislation, helping to moderate the business cycle.