Tara Just Graduated from College

question 7

Multiple Choice

Tara just graduated from college.In order to devote all her efforts to college,she didn't hold a job.She is going to cruise around the country on her motorcycle for awhile before she starts looking for work.As a result,the unemployment rate

• A)increases,and the labor-force participation rate increases.
• B)is unaffected,and the labor-force participation rate is unaffected.
• C)increases,and the labor-force participation rate decreases.
• D)increases,and the labor-force participation rate is unaffected.

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Definitions:

Indirect Method

An accounting technique used in cash flow statements to derive operating cash flow by adjusting net income for non-cash transactions and changes in working capital.

Depreciation Expense

The allocation of the cost of a tangible fixed asset over its useful life, reflecting its consumption, wear and tear, or obsolescence.

Investing Activities

Financial transactions related to the acquisition or sale of long-term assets and investments, part of a company's cash flow statement.

Statement Of Cash Flows

A financial statement 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.