On a Statement of Cash Flows Using the Indirect Format,a

question 7

Multiple Choice

On a statement of cash flows using the indirect format,a decrease in unearned revenue is:

• A)deducted from net income in the operating activities section
• B)included as an outflow in the financing activities section
• C)added to net income in the operating activities section
• D)ignored,since it is a noncash expenditure

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Definitions:

Variable Input

Inputs or resources whose quantity can be changed in the short term to adjust the level of production, such as labor or raw materials.

Labor Market

The marketplace in which employers find workers and workers find jobs, characterized by the demand and supply of labor.

Marginal Revenue Product

The additional revenue generated from employing one more unit of a factor of production, holding other factors constant.

Worker

An individual employed to perform tasks or services in exchange for compensation, such as wages or salaries.