The Accounting Concept Which Asserts That Money Is the Common

question 35

Multiple Choice

The accounting concept which asserts that money is the common measurement unit for economic activity is the:

• A)business entity concept
• B)monetary unit concept
• C)going concern concept
• D)dollar-value concept

Adjust net income for changes in operating assets and liabilities to arrive at cash flows from operating activities.

Recognize the impact of transactions involving property, plant, and equipment on the statement of cash flows.

Determine the effect of issuing and repurchasing stock on the statement of cash flows.

Calculate the cash paid for dividends and the effects of dividends declared but not yet paid.

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Definitions:

Downward Communication

The transmission of messages from higher to lower levels in an organization.

Lower Level

Refers to a position or status that is considered to be of lesser importance or rank within a hierarchy or structure.

Network of Contacts

A group of acquaintances, professionals, and colleagues that an individual can consult, cooperate with, or seek favors from in professional matters.

Formal Channels

Official, recognized pathways for communication or procedures within an organization, often documented and established by policy.