Adjusted Net Saving Is Equal to Gross Saving Minus Both

question 17

Multiple Choice

Adjusted net saving is equal to gross saving minus both the depreciation of made capital and the depreciation of:

• A) resource surpluses.
• B) natural capital.
• C) trade assets.
• D) reserve capital.

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Definitions:

Indirect Method

A cash flow statement approach that adjusts net income for changes in balance sheet accounts to identify cash flow from operating activities.

Operating Activities

Activities that involve the core business operations of a company, such as selling goods and services.

Depreciation Expense

The allocated portion of the cost of a tangible asset that is expensed in each accounting period during its useful life, reflecting wear and tear, deterioration, or obsolescence.

Indirect Method

A method of preparing the cash flow statement in which net income is adjusted for changes in balance sheet accounts to calculate the cash from operating activities.