Unpredictable Changes in the Value of Money, Which Brings About

question 139

Multiple Choice

Unpredictable changes in the value of money, which brings about gains and losses, are a consequence of unpredictable changes in

• A) real GDP.
• B) unemployment rate.
• C) inflation.
• D) productivity.

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Definitions:

Indirect Method

A method of reporting cash flows from operating activities by adjusting net income for changes in non-cash accounts.

Direct Method

A way of preparing the cash flow statement where actual cash flow information from the company's operations is used.

Operating Activities

Transactions and events that affect net income, primarily related to the core operations of a business.

Direct Method

An approach to cash flow statement preparation that lists major classes of gross cash receipts and payments.