In the Basket of Goods That Is Used to Compute

question 72

Multiple Choice

In the basket of goods that is used to compute the consumer price index,which of the following categories of consumer spending is the largest?

• A)education & communication
• B)food & beverages
• C)medical care
• D)recreation

---

Definitions:

Investing Activities

Financial transactions involving the purchase and sale of long-term assets and other investments not included in cash equivalents.

Cash Flow Statement

A financial statement that provides aggregate data regarding all cash inflows a company receives from its ongoing operations and external investment sources, as well as all cash outflows that pay for business activities and investments during a given period.

Statement of Cash Flows

This document details the combined amount of cash a business gains from its day-to-day operations and outside investments, and the cash it expends on operating and investing activities over a particular period.

Indirect Method

A method of calculating cash flows from operating activities in the cash flow statement by adjusting net income for changes in non-cash accounts.