Travel by Bus and Pawn-Shop Services Would Be Expected to Be

question 21

Multiple Choice

Travel by bus and pawn-shop services would be expected to be examples of:

• A) normal goods.
• B) inferior goods.
• C) substitute goods.
• D) complementary goods.

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Definitions:

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset over its useful life.

Indirect Method

A technique used in cash flow statements where net income is adjusted for non-cash transactions and changes in working capital to calculate net cash from operating activities.

Cash Dividend

A distribution of a portion of a company’s earnings, decided by the board of directors, to a class of its shareholders in the form of cash.

Statement Of Cash Flows

A financial report that shows how changes in balance sheet accounts and income affect cash and cash equivalents, breaking the analysis down to operating, investing, and financing activities.