The Types of Business Activities Measured by the Statement of Cash

question 184

Multiple Choice

The types of business activities measured by the statement of cash flows are:

• A) selling goods, selling services, and obtaining financing.
• B) operating activities, investing activities, and financing activities.
• C) hiring, producing, and advertising.
• D) generating revenues, paying expenses, and paying dividends.

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Definitions:

Consumer Spending

The total amount of money spent by households and individuals in an economy on goods and services, an important indicator of economic health.

Consumption Expenditures

The total amount of money spent by households and individuals on goods and services for personal use.

Circular Flow Diagram

A visual model of the economy that shows how dollars flow through markets among households and firms.

Households

Economic units that consist of all individuals who live together in one dwelling, making joint decisions about consumption and labor.