Which of the Following Will Cause an Increase in Current

question 14

Multiple Choice

Which of the following will cause an increase in current consumption?

• A)an increase in current disposable income
• B)an increase in financial wealth
• C)an increase in human wealth
• D)all of the above
• E) both B and C

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Definitions:

Financing Activities

Transactions and events where a company raises capital and repays investors, including issuing debt and equity as well as dividend payments.

Resources

Economic or productive assets that can be utilized by an organization or individual to generate income or value, including natural, human, and financial resources.

Land

An asset category representing the ground a company owns, used for business operations but doesn’t depreciate over time.

Buildings

Physical structures owned by a business, classified as fixed assets on the balance sheet.