Examlex

Solved

Which of the Following Is Not an Example of Spending

question 240

Multiple Choice

Which of the following is not an example of spending on goods and services in the circular flow model?


Definitions:

Current Assets

Assets that a company expects to convert to cash, sell, or consume within one year or its operating cycle, whichever is longer.

Fixed Assets

Long-term tangible assets used in a company's operations that are not expected to be converted into cash within a year.

Current Liabilities

Short-term financial obligations that are due within a year or within the normal operating cycle of a business.

Indirect Method

A cash flow statement presentation method that adjusts net income for changes in balance sheet accounts to calculate cash flow from operating activities.

Related Questions