On the Statement of Cash Flows Worksheet

question 97

Multiple Choice

On the statement of cash flows worksheet,

• A) significant non-cash investing and financing activities are not entered in the reconciling columns.
• B) a decrease in cash will be offset by a debit in the reconciling items columns at the bottom of the worksheet.
• C) an increase in cash will be offset by a debit in the reconciling items column at the bottom of the worksheet.
• D) income statement accounts are listed after statement of financial position accounts in the top half of the worksheet under the indirect method.

Analyze the effects of interest rate changes on the present and future value of financial instruments.

Compare and decide among various investment opportunities using the present value concept.

Understand the role of capital inputs and the difference between stocks and flows in production.

Apply the concept of present value to real-life scenarios like contracts, investments, and lawsuits.

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Definitions:

Positive Externalities

Benefits experienced by third parties or society at large as a result of an economic activity, without the third party incurring any cost.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning no one can be prevented from using them and one person's use does not reduce availability to others.

Consumer Surplus

The gap between what consumers are prepared and can afford to pay for a product or service, and what they end up paying in reality.

Producer Surplus

The difference between the amount producers are willing to accept for a good versus what they actually receive.