Which of the Following Statements Is Not Correct

question 56

Multiple Choice

Which of the following statements is not correct?

• A)Welfare programs may encourage illegitimate births.
• B)The decline in welfare benefits since the 1970s has been associated with a decline in the percentage of children living with a single parent.
• C)Welfare programs may reduce incentives for people to work.
• D)A negative income tax program uses tax revenues collected from high-income families to provide cash subsidies to low-income families.

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Definitions:

Indirect Method

An approach used in cash flow statements to adjust net income for non-cash transactions and changes in working capital to calculate operating cash flow.

Operating Activities

Activities that constitute the primary or main activities of a business, including the production, sale, and delivery of its products and services.

Direct Method

A way of preparing the cash flow statement in which actual cash receipts and payments are reported, rather than adjusting net income for changes in non-cash accounts.

Net Cash Flow

The amount of cash generated or lost over a period, taking into account cash inflows from operations, investments, and financing.